According to the New Zealand Herald, the new buses were introduced by the town's community centre as an eco-alternative to the allegedly gas-guzzling public transport.
Running on a mixture of diesel and kitchen vegetable oil, the service was introduced as a one-year trial and its continuation is dependent on the support of tourists and locals.
Earlier reports from local media had suggested that locals had been slow to take-up use of the new buses.
The three bio-buses travel to Kaitaia's market where one driver will stay to look after passengers' goods while they shop, claims the Herald.
Warren Snow, the service's marketing manager told the paper: "It is also great for backpackers and those staying in motels and camps."
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great travel insurance when travelling to the land of the long white cloud.