The Biofuels Association of Australia (BAA) is deeply disappointed at the government's decision to abandon the commitments made to retain the effective excise free status of renewable biofuels until 2021. While supportive of the government's stance to save funds by removing subsidies for imported biodiesel that have already been subsidised in their country of origin, the BAA is most concerned how a complete U‐turn in policy will be interpreted by investors in any sector of the economy.

A report released by the Texas Tech University underlines the costs to NSW motorists for not choosing Ethanol blended fuels and points to the need to educate Australian motorists in the facts that American motorists have known for some years – E10 is a near perfect substitute for both regular and premium gasoline.

The report concludes that motorist's fears about ethanol blended fuels have caused them to choose higher priced Premium ULP causing them to waste an additional $331M (or 12.01 cents per litre(cpl)) on fuel between 2007 to 2013. Marketers have seized on this fear and leveraged the issue to improve wholesale margins on Premium fuels and increase profits.

FEDERAL Member for Dawson, George Christensen's, fight for North Queensland's ethanol industry received a boost today with the Prime Minister indicating the Liberal National Government would not increase the tax on the biofuel.

Prime Minister, Tony Abbott, acknowledged Mr Christensen's "deep commitment" to the ethanol industry and offered greater certainty to farmers and businesses depending on the emerging industry.

Deniliquin could be home to a multi-million dollar ethanol plant by as early as 2015, Pastoral Times reports.

An application to build the AUD 90 million Deniliquin plant, which would use locally sourced grains to produce fuel and other by-products, has been lodged with the NSW Government Planning Department. Korean company Dongmun Greentec, an Australian branch of Dongmun IRS Co Ltd, has earmarked a 147.18ha industrial block. Dongmun Greentec president said construction would begin by May or June next year. The proposed plant will be large enough to produce 110,000 kilolitres of ethanol each year and up to 92,000 tonne of dried distilled grain. (09 December 2013)

Source: Platts Daily Biofuels News