Australia biofuel production to double by 2015

Australia’s biofuel production is forecast to more than double by 2015 as demand for alternative transport fuels increases, a private consultancy forecast on Wednesday.

A study by APAC Biofuel Consultants shows demand has already increased by 34 per cent, which is more than double the rate of world growth in production.

Australia’s installed biofuel annual capacity is forecast to rise to 1.519 billion litres by 2015 from 636 million liters in 2010, the report says.

Installed ethanol capacity was forecast to rise to 910 million litres by 2015 from 350 million liters in 2010.

The report says a mandate for ethanol use in New South Wales and the fuel’s promotion in Queensland and Victoria have led to higher demand.

The mandates, plus growing use of biofuels as alternative to crude oil-based fuel, would see biodiesel capacity rise to 609 million litres by 2015 from 286 million litres in 2010.

The rise in biodiesel production may result in Australia needing to import close to 1.4 million tonnes of soybeans a year unless it develops a sustainable production base, the report says.