Page Content
Biofuels/Bio-energy
Biofuels are fuels produced from renewable organic sources. The term biofuels can refer to fuels for electricity and fuels for transportation. Biofuels for transportation include ethanol, biodiesel and pyrolysis oils.
Biofuels with commercial prospects in Australia are ethanol and biodiesel. These are the most common types of biofuels that are being developed and used in Australia. This is due to several factors including the state and feasibility of feedstock conversion technology, feedstock availability and fuel usability.
Almost all current and proposed biofuel plants are located close to feedstock supplies in regional areas across Australia. Successful development of fully commercial biofuel refineries may produce regional benefits including additional employment, broadening of economic activity and alternative markets for some agricultural activities. The cost of producing biofuels relative to petrol and diesel is the fundamental factor influencing the commercial viability of biofuels.
Australian Government biofuels policy
The Government is committed to the development of a competitive and commercially viable biofuels industry in Australia as a means of encouraging regional development and diversifying Australia’s transport fuel mix. In light of this commitment, the Government has created a policy framework to encourage the development of Australian sources of biofuels, and ensure their long term competitiveness.
The Australian Government’s position of not supporting mandatory ethanol in fuel reflects the Government’s belief in consumer choice. However, the Government will continue to explore practical measures to increase the availability of biofuels for Australian motorists. The Australian Government’s policy is that ultimately all transport fuels, including biofuels, should compete on their commercial merits.
Australian Government biofuels policy is managed by several departments:
- Department of the Prime Minister and Cabinet provides overall leadership on biofuels policy.
- Department of Industry, Tourism and Resources administers fuel policy and production grants for ethanol and other biofuels support measures.
- Australian Taxation Office administers biodiesel production grants through the Cleaner Fuels Grants Scheme.
- Department of the Environment and Water Resources has responsibility for environmental aspects – fuel quality (fuel standards) and air quality issues, and administers a number of measures to improve consumer confidence in biofuels.
The Department is monitoring the development of a domestic biofuels industry, with particular attention to opportunities and challenges for our portfolio industries. DAFF advises the Government on the role portfolio industries can play in meeting the Government’s biofuels policy objectives.