New Zealand government announces $0.93 per gallon biodiesel subsidy

In New Zealand, the national government said that it would spend up to $21 million on biodiesel subsidies over the next three years in order to encourage investments in renewable fuels. The subsidy will range up to $0.93 per gallon, and will commence in July, according to the Energy Ministry. That subsidy matches an excise tax exemption that was applied initially to ethanol.

Argent Energy, the UK fuel maker which had previously abandoned a $100 million project in the country due to unstable government policy on renewable energy, said it was not tempted by the new policy to restart its project.

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