YEARBOOK 2022 can increase supply security.
TRANSPORT
What are Biofuels?
Biofuel mandate – lower emissions or just higher fuel prices? New Zealand’s transport sector accounts for 47% of the country’s total domestic carbon emissions, but the Government hopes to turn things around with its Sustainable Biofuels Mandate, says Kalkine Chief Executive Kunal Sawhney
T
he government’s announcement for authorising the use of biofuels for cars, ships, trains, and trucks is a welcome step that can play a significant role in reducing emissions from the transport sector. Fuel wholesalers would 74 infrastructurenews.co.nz
now need to cut total greenhouse gas (GHG) emissions for road transport fuels sold by a set percentage every year by using biofuels as a part of the fuel supply. The Government is to introduce its Sustainable Biofuels Mandate from
1 April 2023. A jet fuel mandate is also in process of being developed, given the challenges that the aviation sector is facing in lowering GHG. Biofuels could be a long-term solution, and by transitioning to local production, New Zealand
Biofuels are renewable liquid fuels obtained from biomass materials like plant or algae material or animal waste. They are often considered to be a substitute for fossil fuels. There are 2 types of biofuels- Conventional biofuels and Advanced biofuels. Conventional biofuels are made from agricultural crops and have limited emissions reduction potential. However, advanced biofuels are made from more sustainable feedstock like agricultural and forestry residues, nonfood crops like grasses and algae, and industrial waste and residue streams. They have a larger emissions reduction ability. New Zealand has low usage of biofuels by global standards and has established little production capability. When fossil fuels are burned in internal combustion engines, all of the carbon that has been stored underneath is released into the atmosphere as carbondioxide. However, when biofuels replace part or all fossil fuels, the net amount of carbon released decreases. Sustainable biofuels emit far fewer greenhouse gases than fossil fuels over their entire life cycle. In New Zealand, there is a great chance to either import or grow biofuel production and consumption.
The economic cost of biofuels
Biofuel production involves high production costs involving a complex
