A biodiesel manufacturer says it will have to abandon a production plant, sitting half-built in Auckland, if the Government does not extend its biodiesel subsidy.
Manufacturers currently receive up to 42 cents per litre of biodiesel they produce, but it is uncertain whether that will continue beyond June next year.
The Ecodiesel company says it would only be worth completing its plant if the subsidy was extended for at least another three years.
Chief executive Gary Brockett says about $2.5 million has been spent on the building and about $5 million on business costs.
He says the company would have to count that as a loss if the Government decided against extending the scheme.
The Government says the matter is still being assessed.