Greener fuel 'risk to cars'

By STUART DYE

A renewable fuel that could be available by Christmas may not be compatible with tens of thousands of New Zealand cars.

Motoring experts are warning that the new ethanol-petrol blend, approved by environment chiefs yesterday, could damage the engines of cars and nullify warranties.

The Environmental Risk Management Authority has approved an application from the Energy Efficiency and Conservation Authority for the manufacture, release, handling and use of petrol-ethanol blends.

The new fuel could be at pumps by the end of the year.

But the Motor Industry Association says it is not known how many cars will be able to use the fuel.

"We are trying to get together a definitive list of manufacturers, makes and models that can use the fuel, but it is at least two weeks away," said Perry Kerr, association chief executive.

"Without this information it is impossible to say who will and will not be able to use this fuel."

Mr Kerr added that the petrol-ethanol blend, used in the US, Sweden and Brazil, was less efficient.

George Fairbairn, director of public affairs for the AA, said the fuel would be redundant unless it was cheaper.

"Unless the Government lowers the level of excise tax and there is a clear price difference, motorists will not use it," he said.

Up to 10 per cent of ethanol can be blended with petrol under yesterday's ruling.

Because ethanol can be made from agricultural byproducts, it is a renewable resource.

Scientists say the blend offers benefits in terms of reductions in exhaust and greenhouse gas emissions. Provided an engine is equipped to process the fuel, there is no apparent detrimental effect on other aspects of engine or vehicle performance, they say.

Oil companies have given a cautious welcome to the news.

Shell New Zealand said it was pleased but "needed to review the economics pending the Government decision on the excise treatment".