Ethanol versus Premium – The Facts

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The Biofuels Association of Australia today questioned a number of recent articles relating to the pricing of premium and unleaded ethanol blends in the lead up to increasing mandates in NSW and Queensland.

"It seems the general public is still being misled on a number of fronts" said Heather Brodie, CEO of the BAA. "Nearly all Australian-made cars are suitable for E10 fuels, and the vast majority of imported cars are also compatible with E5 or E10 ethanol blended fuels. Cars all over Europe, America, Brazil and Asia have been using blended fuels for decades, so it is a proven product that can go a long way to reducing our carbon emissions."

Ethanol is an alcohol which is made by fermenting the sugar components of plant materials by using yeast. Ethanol can be used as a fuel for vehicles in its pure form, but it is usually blended with gasoline so as to reduce vehicle emissions of carbon dioxide and particulates.

"We have the states of NSW and Queensland taking a positive step for the environment by introducing mandated ethanol blends at the bowser" Ms Brodie said. "With the price differential between premium unleaded and an ethanol blend we should see more people willing to give it a go. Most cars actually produce more power using an ethanol blend because there is a higher octane rating than petrol."

"Remember how much we all hated unleaded petrol as compared to super when it first came in? We're in the same boat now in getting used to a new product. Transportation is the third largest emitter of greenhouse gases and is responsible for more than a quarter of the world's emissions" Ms Brodie said. "Ninety eight percent of the energy used in the transportation industry still derives from fossil fuels. Immediate reductions of emissions can be achieved through the use of alternative fuel sources such as ethanol and biodiesel blends."

"It's time we all started recognising that locally produced, environmentally sustainable and economically viable transport fuels will actually be necessary in order to meet petroleum demands in the future. Australia has the opportunity to lead the world in the use of biofuels but at the moment we are well behind the mature positions being taken in Europe, America, Asia and Brazil."