20 May 2009

Biofuel company will not return, despite grants

8:26 am on 20 May 2009

A Scottish company which quit New Zealand during last year's biofuel wrangle, says it will not return, despite the announcement of Government money for biodiesel producers.

The Budget on 28 May will allocate $36 million in grants, over three years, to local producers selling to New Zealand consumers.

Last year, the National-led Government repealed legislation that would have required a small proportion of petrol and diesel to be sourced from biofuels.

Argent Energy, based in Motherwell, near Glasgow, had ditched plans to build a 60 million litre biodiesel plant in the Bay of Plenty because of what it calls the whims of policymakers, and says that decision still stands.

Bio Diesel Oils New Zealand Ltd, which vowed to axe large scale expansion in Auckland and east Waikato in protest at Government changes, is making no comment until it sees more of the latest proposal.