Biofuel in Australia
Encyclopedia
Biofuel in Australia is available both as biodiesel
Biodiesel
Biodiesel refers to a vegetable oil- or animal fat-based diesel fuel consisting of long-chain alkyl esters. Biodiesel is typically made by chemically reacting lipids with an alcohol....

 and as ethanol fuel
Ethanol fuel
Ethanol fuel is ethanol , the same type of alcohol found in alcoholic beverages. It is most often used as a motor fuel, mainly as a biofuel additive for gasoline. World ethanol production for transport fuel tripled between 2000 and 2007 from 17 billion to more than 52 billion litres...

, which can be produced from sugarcane or grains. There are currently three commercial producers of fuel ethanol in Australia
Australia
Australia , officially the Commonwealth of Australia, is a country in the Southern Hemisphere comprising the mainland of the Australian continent, the island of Tasmania, and numerous smaller islands in the Indian and Pacific Oceans. It is the world's sixth-largest country by total area...

, all on the East Coast.

Legislation imposes a 10% cap on the concentration of fuel ethanol blends. Blends of 90% unleaded petrol and 10% fuel ethanol are commonly referred to as E10, which is available through service stations operating under the BP, Caltex, Shell and United brands as well as those of a number of smaller independents. Not surprisingly, E10 is most widely available closer to the sources of production in Queensland and New South Wales. The Australian Government has set a target for the sale of 350 million litres of E10 fuel each year by 2010.

Recently BP Australia celebrated a milestone with over 100 million litres of the new BP Unleaded with renewable ethanol being sold to Queensland motorists. In partnership with the Queensland Government, the Canegrowers organisation launched a regional billboard campaign in March 2007 to promote the renewable fuels industry.

Australia is drafting new biodiesel legislation in 2008.

Caltex markets a B2 biodiesel blend suitable for all vehicles since 2006 and a B5 biodiesel blend following trials in 2005.

Regulation

Legislation imposes a 10% cap on the concentration of fuel ethanol blends. Blends of 90% unleaded petrol and 10% fuel ethanol are commonly referred to as E10. There is also a requirement that retailers label blends containing fuel ethanol on the dispenser.

Taxation

Domestically produced fuel ethanol is currently effectively exempt from excise tax until July 1, 2011 (an excise of 38.143 cents per litre is payable on petrol). From this date, excise will be increased at 2.5 cents per litre annually until it reaches 12.5 cents per litre in 2015.

Government Support

Federal Government support for fuel ethanol includes a voluntary industry biofuels target (encompassing ethanol, biodiesel, and other biofuels) of 350 million litres per annum by 2010, capital grants to current and prospective producers, fuel excise relief, and an effective tariff on imported ethanol until July 1, 2011.

In 2006, the Premiers of both New South Wales and Queensland proposed mandating the blending of ethanol into petrol.

Marketing

E10 is available through service stations operating under the BP, Caltex, Shell and United brands as well as those of a number of smaller independents. Not surprisingly, E10 is most widely available closer to the sources of production in Queensland and New South Wales. E10 is most commonly blended with 91 RON "regular unleaded" fuel.

BP has been marketing ethanol blended fuel in Queensland since 2001 and will soon commence the rollout to BP branded service stations in New South Wales, with the fuel to be available at about 50 additional locations by the end of the year. Over the next few years BP’s planned expansion of ethanol blended fuel in New South Wales will see this number of service stations doubling.

E85 vehicle

Since 2007, the Saab 9-3
Saab 9-3
The first generation 9-3, a substantially improved 'new-generation' Saab 900 was launched in 1998 for the 1999 model year. Saab claimed that 1,100 changes were made, including a revised suspension in an attempt to tighten up the handling characteristics of its predecessor, the Saab 900...

 has been available with the option of one of two GM Ecotec engines, which are able to run on E85
E85
E85 is an abbreviation for an ethanol fuel blend of up to 85% denatured ethanol fuel and gasoline or other hydrocarbon by volume. E85 is commonly used by flex-fuel vehicles in the US, Canada, and Europe. Some of the benefits of E85 over conventional gasoline powered vehicles include the potential...

 or any other mix of petrol and ethanol
Ethanol
Ethanol, also called ethyl alcohol, pure alcohol, grain alcohol, or drinking alcohol, is a volatile, flammable, colorless liquid. It is a psychoactive drug and one of the oldest recreational drugs. Best known as the type of alcohol found in alcoholic beverages, it is also used in thermometers, as a...

. GM-Holden
Holden
GM Holden Ltd is an automaker that operates in Australia, based in Port Melbourne, Victoria. The company was founded in 1856 as a saddlery manufacturer. In 1908 it moved into the automotive field, before becoming a subsidiary of the U.S.-based General Motors in 1931...

 are committed to having locally built Holden Commodore
Holden Commodore
The Holden Commodore is an automobile manufactured since 1978 by the Holden subsidiary of General Motors in Australia, and, formerly, in New Zealand. In the mid-1970s, Holden established proposals to replace the long-serving Kingswood nameplate with a smaller, Opel-based model...

s running E85 in the market by 2010. The group says that biofuels will become a leading alternative fuel for the company.

See also

  • Biofuels by region
    Biofuels by region
    The use of biofuels varies by region and with increasing oil prices there is a renewed interest in it as an energy source.Recognizing the importance of implementing bioenergy, there are international organizations such as IEA Bioenergy, established in 1978 by the OECD International Energy Agency ,...

  • Mitigation of global warming in Australia
    Mitigation of global warming in Australia
    Mitigation of global warming involves taking actions to reduce greenhouse gas emissions and to enhance sinks aimed at reducing the extent of global warming. This is in distinction to adaptation to global warming, which involves taking action to minimise the effects of global warming...

  • Ethanol fuel
    Ethanol fuel
    Ethanol fuel is ethanol , the same type of alcohol found in alcoholic beverages. It is most often used as a motor fuel, mainly as a biofuel additive for gasoline. World ethanol production for transport fuel tripled between 2000 and 2007 from 17 billion to more than 52 billion litres...

  • Ethanol fuel by country
    Ethanol fuel by country
    The world's top ethanol fuel producers in 2010 were the United States with and Brazil , accounting together for 88% of world production of . Strong incentives, coupled with other industry development initiatives, are giving rise to fledgling ethanol industries in countries such as Germany, Spain,...

  • Ethanol fuel in Brazil
    Ethanol fuel in Brazil
    Brazil is the world's second largest producer of ethanol fuel and the world's largest exporter. Together, Brazil and the United States lead the industrial production of ethanol fuel, accounting together for 87.8% of the world's production in 2010. In 2010 Brazil produced 26.2 billion litres Brazil...

  • Ethanol fuel in the United States
    Ethanol fuel in the United States
    The United States became the world's largest producer of ethanol fuel in 2005. The U.S. produced 13.2 billion U.S. liquid gallons of ethanol fuel in 2010, and together with Brazil, accounted for 88% of that year's global production...

  • Ethanol fuel in Sweden
  • List of renewable energy topics by country

External links

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