The Government is still working on removing the tax difference between bioethanol and biodiesel to help New Zealand biofuel producers, says Energy Minister Gerry Brownlee.
The Government scrapped the previous government's biofuel sales target late last year.
Speaking at a conference on biofuels and electric vehicles in Wellington, Mr Brownlee said he hoped to level the playing field because locally produced biodiesel attracted road-user taxes, whereas imported bioethanol did not.
Petrol companies Gull and Mobil sell biofuels, and Gull chief executive Wayne Ferrell says government policy should support the development of a biofuels industry as part of promoting sustainability and energy security.
Mr Ferrell says he has a clear view of where the future lies for his company, which is also investing in developing electric vehicles in partnership with the University of Perth, in Western Australia.
Australian car maker GM-Holden says New Zealand needs six dedicated ethanol plants to ensure biofuel is a viable option for the future.
The company's energy and environment director, Richard Marshall, says New Zealand needs investment to convert biomass industries such as forestry into a bioethanol industry.
Mr Marshall says New Zealand would need only half a dozen ethanol plants because the technology is well developed, clean-burning and renewable.
However, he told delegates at the Energy Efficiency and Conservation Authority-sponsored conference that such plants could be seen as having an investment life of 30 to 40 years, and would need supportive government policy.
