Gull Supports Govt Move to Bring Bio-Fuels to NZ

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Gull Supports Government’s Move to Bring Bio-Fuels to New Zealand

Auckland, 14 September 2006 – Gull New Zealand announced today that it welcomed and supported the announcement by the Government to release a discussion document for the proposed sale of environmentally friendly biofuels for the country’s motorists and transport sector.

Gull has consistently championed the introduction of biofuels for the New Zealand market particularly as these environmentally friendly fuels have extensive benefits for reducing climate change such as less carbon dioxide emissions, better air quality and will also use New Zealand sources of renewable energy. In addition, biofuel blends of five or ten percent can now be used in most New Zealand vehicles without any modification.

Biofuels are not produced from fossil based deposits such as oil or gas, and are added to petrol (bioethanol) and diesel (biodiesel) in most transport and non-transport applications as the most effective response
to climate change. The Government’s proposal will require oil companies to sell a minimum percentage of biofuels in transport fuels beginning with 0.25 percent in 2008 and rising to 2.25 percent in 2012.

Dave Bodger, General Manager of Gull New Zealand, says the Government’s announcement of a phased sale of biofuels from 2008 is exciting for motorists and the transport industry as it provides a positive environmentally friendly choice.

“Gull was among the first to introduce biodiesel to Australian motorists and we look forward to doing the same for Kiwis with an ethanol blended fuel through our stations throughout the North Island. The
Government’s proposal which encourages the petroleum industry, via a phased introduction to provide biofuels is very positive. Gull views these percentage targets as a minimum requirement and is keen to
exceed these where possible.”

Bodger says that Gull has already been talking with the Government to get the required legislative framework in place for the introduction of biofuels as the existing Petroleum Products Specifications Regulations (210-2002) are currently a barrier to entry.

“All it takes is for a minor notation to the Schedule of the Petroleum Regulations as this now effectively prevents ethanol blends being made available to New Zealand motorists. The Regulations stipulate for a
particular Vapour Pressure (DVPE) standard and Flexible Volatility Index (FVI) which does not allow leeway for adjusting fuel blends (for example in summer months) and so restricts the addition of ethanol to petrol. A notation to the schedule of the regulations will allow companies like Gull to supply the ethanol biofuel and likely associated price benefits that New Zealand motorists would appreciate.”

Bodger also says that biofuels like ethanol are the future and the best way for all New Zealander’s to make their transport means more cost-effective and using sustainable sources.

‘We all need to conserve the fuel we use in everyday transport which is a significant 42 percent of the country’s total energy output. Gull believes that with a notation to the schedules of the Petroleum Regulations to make way for biofuels and the government’s own announcement, there is a good chance that ethanol blends can be introduced at a competitive price to New Zealand which will deliver value to Kiwi motorists.”

“We look forward to playing an active part in stage one of the introduction of biofuels to New Zealand as this will be a continuation of Gull’s leadership as the first company to introduce environmentally-friendly
low sulphur diesel to the local market.”

Gull introduced a B20 blend of renewable bio-diesel to its sites in Western Australia in the first half of 2006 where it has since gained in popularity and acceptance from Australian motorists who are keen to
make a difference to their environment and have a choice of which fuels they use.

“Just as bio-diesel is climate friendly with less greenhouse gas emissions than ordinary petroleum diesel, we also know that the same is basically true for bioethanol compared to regular petrol. Our own
New Zealand consumer research also tells us that Kiwi motorists are looking for an environmentally friendly alternative, and the Government is giving us and the petroleum industry the green light to do so”

ENDS

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