Australia’s biofuels demand rockets to more than double worldwide rate

Surging biofuel demand in Australia has outstripped the rate of global growth, with the country witnessing a 34 per cent increase between 2009 and 2010, according to the latest figures.
A report by APAC Biofuel Consultants said demand in Australia for biofuels over 2009 was more than double worldwide growth, which increased by 16 per cent.
The Australian Biofuels 2010-2011 report said that despite a lack of clarification on government policy for the sector, the rate of uptake is both encouraging and game changing.
Mike Cochran, joint CEO of APAC said Australian biofuels demand has outstripped world growth as motorists have focused on best petrol-buying options.
‘The latest growth shows that biofuels are increasingly contributing to the Australian transport fuel mix – replacing imports, assisting fuel security and providing environmental advantages,’ Cochran said.
But he warned that it will need to show it can cope with growth at such a rapid rate.
‘While the Australian ethanol industry is establishing itself as a sustainable alternative industry for the supply of an alternative fuel for petrol – and as an import replacement fuel – the nation’s biodiesel industry has yet to prove itself as a sustainable industry of scale,’ he said.
Demand for ethanol blended petrol containing ten per cent ethanol – known domestically as E10 – was fast becoming a substitute for regular unleaded petrol in both New South Wales and Queensland, the report said.
APAC, which is a joint venture of EnergyQuest and Ecco Consulting, said due to this growing demand, ethanol production capacity in Australia may fall short of meeting the fuel ethanol mandated volume for those states in 2011 and 2012.
‘The ethanol industry received another boost with the introduction of Holden’s Commodore flex-fuel vehicle which can run on 100 per cent petrol or on a blend of up to 85 per cent ethanol/15 per cent petrol,’ Cochran said.
‘In partnership with Holden, Caltex is also setting up E85 retail outlets on the east coast and in South Australia.’
With interest increasing due to the upcoming New South Wales mandate promoting ethanol and biodiesel consumption, the number of retail outlets is increasingly rapidly.
The report found the current total to be 1,730, a figure which is increasingly rapidly.
‘In Australia, the introduction of a state mandate is synonymous with supporting regional development and improving the environmental footprint,’ Cochran said.
‘We note that the Queensland ethanol mandate is scheduled to commence in January in 2011. In the meantime, Victoria is providing grants for biofuel infrastructure development while other states do not have any specific plans for mandates.’