Australia Biofuels Activities
Here you'll find information about Australia's work in biofuels. Learn more about its:
Background
Australia's biofuels industry is in its early stage of development, with both ethanol and biodiesel making up its portfolio. The Australian government has set a biofuels target of 350 million liters (ML) by 2010. However, this equates to less than 1% of Australia's total transport fuel demand; and, at this level, it will remain a niche industry with limited prospects (Wright 2007).
The biofuels industry offers great opportunities for Australia's agriculture sector, but also poses some risks related to additional inputs (water, fertilizers, and pesticides), low crop production due to sustained drought conditions, and impact on other industries, such as livestock. A detailed risk-benefit assessment is needed if biofuels are going to play a stronger role in Australia's future transportation fuel mix.
Production
Ethanol production in Australia doubled in the past two years, from 40.3 ML in 2005/06 to 83.6 ML in 2006/07. Biodiesel experienced a stronger growth during that period, from 21.2 ML to 76.3 ML. There were four operating ethanol plants as of November 2007 with a total capacity of 245.8 ML per year. Current biodiesel production capacity is 246 ML among the five existing plants. Additionally, Australian Renewable Fuels has two biodiesel plants with total capacity of 90 ML, and Australian Biodiesel Group has two plants with 200 ML capacity. However, these facilities are in care-and-maintenance mode as of November 2007. Tables 1 and 2 illustrate the existing and proposed biofuel production facilities in Australia.
Australia's Ethtec (Ethanol Technologies Limited), 51% owned by Willmott Ltd., recently began work on an A$20 million (U.S.$18 million) pilot lignocellulosic ethanol plant in New South Wales. The plant will use wood residues (including pine), bagasse, and other lignocellulosic materials as feedstock and will convert it to ethanol via biochemical conversion process.
| Company | Fuel Type | Capacity (ML) | Location |
|---|---|---|---|
| Manildra | Ethanol | 170 | Bomaderry, NSW |
| CSR | Ethanol | 60 | Sarina, QLD |
| Rocky Point Distillery | Ethanol | 15 | Woongoolba, QLD |
| Tarac Technology | Ethanol | 0.8 | Nuriootpa, SA Berri, SA Griffith, NSW |
| Biodiesel Industries Australia | Biodiesel | 40 | Rutherford, NSW |
| Eco Tech Biodiesel | Biodiesel | 75 | Narangba, QLD |
| Evergreen Fuels | Biodiesel | 1 | Mossman, QLD |
| Future Fuels | Biodiesel | 30 | Moama, NSW |
| Biomax | Biodiesel | 100 | Laverton, VIC |
| Company | Fuel Type | Capacity (ML) | Location |
|---|---|---|---|
| Austcane | Ethanol | 60-100 | Burdekin, QLD |
| Bundaberg Sugar | Ethanol | 10 | Bundaberg, QLD |
| CSR Ethanol | Ethanol | 60 to 100 | Burdekin, QLD |
| Dalby Bio-refinery | Ethanol | 80 | Dalby, QLD |
| Downs Fuel Farmers | Ethanol | 160 | Dalby, QLD |
| Four Arrows | Ethanol | Not known | Coleambally, NSW |
| Mackay Sugar | Ethanol | 70 | Mackay, QLD |
| Primary Energy | Ethanol | 160 | Kwinana, WA |
| Primary Energy | Ethanol | 160 | Pinkenba/Brisbane, QLD |
| Marinna Energy | Ethanol | 500 | Junee, NSW |
| SymGrain | Ethanol | 100 | Quirindi, NSW |
| SymGrain | Ethanol | 100 | Western Victoria, VIC |
| Trangie Farmers and Business | Ethanol | 60 | Narromine, NSW |
| Axiom Energy | Biodiesel | 150 | Toll Geelong Port, VIC |
| AJ Bush | Biodiesel | 60 | Sydney, NSW |
| Biodiesel Producers Ltd | Biodiesel | 60 | Barnawartha, VIC |
| BP Renewable Diesel | Biodiesel | 110 | Bulwer, QLD |
| Narromine Shire | Biodiesel | 6 | Narromine, NSW |
| Riverina Pty Ltd | Biodiesel | 44.7 | Deniliquin, NSW |
| SA Farmers Federation | Biodiesel | 15 | Gepps Cross, SA |
| Natural Fuels Australia | Biodiesel | 147 | Darwin, NT |
Feedstock
Ethanol in Australia is produced mainly from sorghum, wheat, and sugar cane. Feedstock supply regions are primarily the grain belt (primarily the south and southeast) and the east coast, where the sugar cane is grown. Animal fats, used cooking oil, and canola are used for biodiesel production in Australia. Alternative oilseed crops — such as pongam, jatropha, and Indian mustard — have also been considered for production, particularly for marginal lands.
The increasing cost of feedstock and irregular supply (due to persistent drought conditions) are major concerns for local ethanol producers. Drought has adversely affected grain and oilseed production in Australia for a second year in succession. Wheat production in 2007/08 is estimated at around 12.7 million tonnes, and canola production at 931 000 tonnes. Although these production levels are significantly higher than production in 2006-07, they are well below average. The total area planted to grain sorghum is forecast to be 795,000 hectares in 2007-08, 74% more than the area sown last year. This is due to average and above average rainfall in the fall (ABARE 2007).
Economics
The following charts show specific economic statistics for the member economy.
| Ethanol | US$/liter |
|---|---|
| From grains | 0.51 |
| From C-molasses | 0.35 |
| From sugar cane | 0.71 |
Source: RIRDC/CSIRO, 2007
| Biodiesel | US$/liter |
|---|---|
| From used cooking oil | 0.31 |
| From canola | 0.63 |
| From tallow | 0.39 |
Source: RIRDC/CSIRO, 2007
Biofuels in Use
Ethanol and biodiesel are the two biofuels with commercial prospects in Australia. The bulk of biodiesel production in Australia is sold in blends with petroleum diesel, ranging from B2 to B100. The bulk of ethanol production in Australia is sold in blends with petroleum containing up to 10% ethanol.
Infrastructure and Vehicles
Australia has more than 800 biofuel refueling stations. The majority of these sell E10 (a 10% ethanol in petroleum mix) with some stations selling biodiesel blends typically B2, B5, and B20. United Petroleum intends to sell E85 from two sites, one in Melbourne and another in Sydney.
The Saab 9-5 2.3t was made available to Australian consumers in 2007. Accurate data on how many of these vehicles are now on the road is not available; however, an estimated 336 vehicles were sold as of June 2007.
Trade
Statistics on the trade of fuel ethanol are not available. However, small volumes of ethanol (all types — fuel, industrial, and beverage) were reported as having been exported in 2006 to the Philippines, Japan, Malaysia, and Thailand.
Natural Fuels Australia Ltd. reported that it made the member economy's first export shipment of biodiesel to Asia and the United States in August 2007. The company produced 8.8 million liters of palm oil biodiesel.
Policy
The Australian government promotes alternative fuels as a means of diversifying Australia's fuel mix and has a suite of measures in place to support alternative fuels and their use.
The government has committed more than $200 million to the development of Australian sources of biofuels. Relevant measures include:
- An election commitment in November 2007 to a $15 million grant program for R&D of second-generation biofuel technologies;
- A biofuels target of at least 350 million litres by 2010. The measures to achieve this target are included in the Biofuels Action Plan, which indicate that biofuels will grow from a base of 28 million litres in 2005 to exceed the 350 million litre target by 2010;
- Initiatives to improve consumer confidence in ethanol including actively encouraging users of Commonwealth vehicles to purchase E10 (a blend of 10% ethanol with petroleum); undertaking vehicle testing of E5 (a blend of 5% ethanol with petroleum) and E10 blends; commissioning a study on the health impact of ethanol under Australian conditions; and labelling new Australian-made vehicles to advise of their suitability to use ethanol-blended fuels;
- $37.6 million for the Biofuels Capital Grants Program to support new or expanded biofuel production capacity;
- The Ethanol Production Grant Program and the Cleaner Fuels Grant Program of 38.143 cents per litre paid to domestic ethanol and biodiesel producers, respectively;
- Ensuring that alternative fuels remain effectively excise-free until 2011, after which they will receive a 50% discount on the rate of excise compared to other fuels with the same energy content;
- Funding of $7.72 million committed under the National Collaborative Research Infrastructure Strategy to construct two pilot-scale facilities for development of novel biofuel production technologies and to enhance related laboratory infrastructure at three universities;
- Funding of more than $7.5 million for innovative renewable fuel projects under the Renewable Energy Development Initiative; and
- $17.2 million for the Ethanol Distribution Program to support the uptake of ethanol by encouraging petroleum stations to install new, or convert existing pumps, to sell E10 blended fuel.
Sources
- ABARE (Australian Bureau of Agricultural and Resource Economics), Report of the Biofuels Task Force to the Prime Minister, August 2005 (PDF 1 MB) Download Adobe Reader.
- Biodiesel Association of Australia
- CSIRO, Biofuels in Australia - issues and prospects, May 2007
- Department of Resources, Energy and Tourism - provided the majority of the biofuels statistics and text included in this overview
- Renewable Fuels Australia
- USDA Foreign Agricultural Service, GAIN Report - Australia Biofuels Annual 2006, June 2006 (PDF 52 KB) Download Adobe Reader.
- Wright, J., "Biofuels in Australia - How Prospective?" ATSE Focus, Volume 146, September 2007, Energy