O'Farrell Government turns back on biodiesel industry: Discourages investment in environmentally friendly fuels

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The O'Farrell Government's decision to suspend biodiesel mandate increases is a major blow to the industry and will discourage investment in environmentally friendly fuels, Shadow Energy Minister, Luke Foley said today.

The Biofuels Act 2007 requires that a minimum percentage of NSW diesel sales be a biodiesel blend.

The legislated mandate was due to increase from two per cent to five per cent on 1 January - however the Energy Minister today suspended the increase indefinitely, claiming there is insufficient local production to meet the mandate.

"The O'Farrell Government doesn’t seem to understand that the whole point of the biofuel mandate is to drive investment in environmentally friendly fuels and increase local supply," Mr Foley said.

"By increasing the biodiesel mandate, the NSW Government supports the growth of the biodiesel industry so supply chains deliver cheaper, cleaner and greener fuel to NSW motorists.

"Delaying the biodiesel mandate increase indefinitely will deliver a massive blow to our State's clean car future.

"Biodiesel, which is made from animal and vegetable oils, provides new markets for NSW farmers as well as clean fuel to power our cars.

"Biodiesel is also good for our environment, creates jobs in regional NSW and reduces our reliance on foreign fuel imports.

"By refusing to increase the biodiesel mandate, all the O'Farrell Government is doing is making it more difficult for the industry to develop in NSW."