Energy loan scheme extended

Press, 9 February 1983, Page 2

Energy loan scheme extended

PA Wellington State loans will now be granted to convert diesel vehicles to alternative fuels. The energy conservation loan scheme had been extended to cover the conversion of diesel vehicles to compressed natural gas. liquefied petroleum gas. and compressed biogas, said the Minister of Energy. Mr Birch, yesterday. The loan scheme provides loans of between $5OOO and $500,000 at an interest rate of 14 per cent. The lending agency is the Development Finance Corporation and. to qualify, projects must have a repayment of between one and five years.

When the loans were introduced last year, the conversion of diesel vehicles had not been included. Mr Birch said. This was because the technology of converting diesel vehicles to alternative fuels had still been at the experimental stage.

“Now New Zealand can

rightly claim to be the world leader in C.N.G. technology as there are at least 10 large trucks working on a commercial basis on C.N.G.diesel mixtures." said Mr Birch.

The 10 vehicles were using a 60 per cent C.N.G.-40 per cent diesel mixture. A 40tonne logging truck working out of Tokoroa, milk tankers in Taranaki, and units hauling C.N.G. from Marton to retail stations at Sanson and Waiouru were the vehicles, the Minister said.

"This illustrates the rapid progress which has been made in the development of this technology.

"Conversion of further trucks is under way. A recent announcement concerned a diesel bus in New Plymouth that was to be converted to run on this dual fuel mix.” Work on the use of L.P.G. as a substitute fuel in diesel engines was also being carried out. Mr Birch said.