KEY POINTS:
Car makers are warning that an environmentally friendly "biofuel" launched by Prime Minister Helen Clark yesterday could seriously damage up to a million Japanese imported vehicles.
It could even cause some cars to catch fire, they say.
The Force 10 ethanol blend put on sale by Gull Petroleum
yesterday is the first product to appear under a Government climate change policy that will require oil companies to ensure 3.4 per cent of their sales are biofuels by the year 2012.
It was greeted by an immediate warning from the Motor Industry Association that up to a million used cars imported from Japan should not use it. And the Automobile Association said it could cause damage that might invalidate a car's warranty.
Toyota said any of its used imports registered before 2005 were not suited to the fuel.
Its New Zealand after-sales general manager, Paul Carroll, said deteriorating fuel lines could cause leaks into car engines, possibly causing fires.
Mitsubishi Motors echoed the concern that the fuel could be corrosive in used imports.
Mazda's technical services manager, John van der Velden, said new cars sold in New Zealand from 2005 would be safe, but the company advised caution for others.
A Nissan spokesman said New Zealand-new vehicles bought after January 2004 would be able to use the fuel, but the company would not accept responsibility for used Japanese imports.
Gull, New Zealand's smallest oil company, put the blend of 98-octane petrol with 10 per cent ethanol on sale yesterday at outlets in Albany, Kingsland and Wiri.
The blend is made from whey, a natural byproduct of the dairy industry supplied by Fonterra.
It costs $1.615 a litre, a few cents cheaper than other high octane petrol but more expensive than 91 octane, which Gull was selling for $1.535 a litre.
Gull's manager in charge of the production, Alan Mountfort, defended the product the company calls Force 10. He said some car manufacturers were taking an extremely cautious approach which did not take into account the use of an industry-approved corrosion inhibitor in the fuel.
Motor Industry Association chief executive Perry Kerr told the Herald that any used Japanese imports, apart from Hondas, were not considered by their makers to be suitable for ethanol blends above 3 per cent of fuel mix.
Mr Kerr said more than half the cars - about 1.3 million - on New Zealand roads were used imports.
Honda accounted for 300,000; the rest should probably not use the new fuel, he said.
Mr Kerr said the Government should come up with regulations to protect motorists where there might be "potential issues" with the fuel.
Ninety-five per cent of all new cars for sale in New Zealand today would run on the fuel, but some older cars could have problems, even if they were bought new in New Zealand.
Toyota criticised Gull for not giving information to motorists. Gull has advised car owners to check with manufacturers.
The Automobile Association said 75 to 80 per cent of drivers used cheaper 91 octane, so would probably not be tempted by the higher octane biofuel.
But Mr Carroll said many motorists would use it if they thought it would give them more power or they liked its green image.
The AA has also cautioned motorists to check whether their vehicles are compatible.
Helen Clark pumped the first of the fuel into cars yesterday, and congratulated Gull on being the first oil company to make the move before next year's biofuels sales obligation.
"Gull's new fuel provides motorists with real choice, helps New Zealand reduce greenhouse gas emissions and takes New Zealand a step further towards achieving sustainability," she said.
THE WHEY AHEAD
* Gull Force 10 is a blend of petrol with 10 per cent bioethanol, a whey-derived product supplied by Fonterra.
* Gull says it will give motorists improved power and performance and a cleaner fuel system as well as producing lower carbon dioxide emissions. Biofuels must make up 3.4 per cent of fuel companies' sales by 2012 under the Government's quota policy.