Biofuel

What is biofuel

Bioethanol is a renewable fuel made by fermenting and distilling products containing sugars and starches. In New Zealand bioethanol is currently made from dairy industry by-products (whey), but many countries produce it from food crops such as maize and sugar cane. Local biodiesel is refined from tallow, but it can also be sourced from edible oils like grapeseed and palm oil.

Pros and cons of biofuel

Biofuel has been welcomed as a more environmentally-friendly fuel because it burns more cleanly and reduces the amount of carbon dioxide (greenhouse gases) that vehicles emit.

However, biofuels are not without their drawbacks:

• Ethanol has a lower energy content, which means you consume about 3% more fuel with a 10% bioethanol blend.
• There's concern that international demand for biofuel feedstocks is encouraging deforestation and competition with food crops for land, leading to increased fuel prices.
• Another problem is that biofuels are currently not economic against the cost of mineral fuels. It's still cheaper to extract and refine fossil fuels than it is to produce biofuels. At current prices, bioethanol is only competitive due to the 66.5 cent per litre tax exemption.

Availability of biofuel in New Zealand

Gull

Launched in August 2007, Gull Force 10 was the first biofuel available to New Zealand motorists. It is a 98 octane petrol with a 10% bioethanol blend (E10), and is available at all of Gull's North Island outlets. Gull also retails an E85 ethanol blend (Gull Force Pro) at selected service stations in Waikato and Auckland.

From September 2010 Gull began retailing a 5% biodiesel blend (Gull Diesel Max) at some sites. The biodiesel used in Gull's B5 blend is currently sourced from waste vegetable oil, and the bioethanol is sourced from NZ whey or Brazilian sugar cane.

Z Energy

Z Energy will shortly be retailing B5 biodiesel in the upper North Island.

AA speaking up for motorists

Support for more environmentally-friendly fuel alternatives

The AA supports the availability of alternative fuels that enable more environmentally-friendly motoring.

The AA advises motorists to only use biofuel if it's compatible with their vehicles. In many older vehicles, using biofuel could damage the fuel system over time, and possibly invalidate the manufacturer's warranty. Because of their affinity to water, biofuels are also incompatible with marine applications and may not be suitable for use in garden machinery (like lawnmowers) where there is a risk water will get into the fuel tank.

AA conditions for the introduction of biofuel

Before endorsing a biofuel, the AA seeks assurance from the seller that the fuel meets the following conditions:

• The biofuel must not cost more than existing fuels, or result in an increase in the cost of existing fuels through cross-subsidisation
• The biofuel must not compromise vehicle performance, including fuel economy
• The biofuel must not damage engine components or invalidate vehicle warranties
• The biofuel must be clearly labelled at the pump, and a 100% mineral grade petrol be retained to provide motorists that have incompatible vehicles with an alternative
• The biofuel must be extensively tested to ensure that the above concerns are fully resolved before biofuels are introduced for public sale
• The seller must undertake an extensive publicity campaign to inform motorists of the cost and benefits, and which vehicles are compatible with which fuel blends
  
  

What AA Members are saying

When AA Members were asked what actions they might take to reduce their greenhouse gas emissions, 58% said they would consider using biofuels.

This was the third most popular option after "Substitute one in five trips with walking or cycling" (68%) and "Learn to drive more economically" (60%) in a March 2007 Survey.