Biofuels Association of Australia Media Release 11 July 2008 $8 per litre for fuel – is it possible?
CSIRO Future Fuels Forum Report $8 per litre for fuel is one possible scenario developed by the CSIRO Future Fuels Forum. These fuel prices are possible if we have peak oil plus a slow response on alternative fuels. “Apart from LPG the volumes of alternative fuels are not enough, especially biofuels”, says Biofuels Association CEO, Bruce Harrison. Biofuels are less than 1% of Australia’s transport fuels and we need much more than that if we are to scale up to the levels we will need to replace increasingly scarce petroleum.
- Australia continues to import 30% of its diesel and 20% of its petrol.
- The cost of net imports of petroleum in calendar year 2007 totalled $14.5 billion and is climbing.
And biofuels have an advantage over many other alternative fuels:
- They reduce greenhouse emissions
- They can be used in existing vehicles and fuel infrastructure.
As we scale up biofuels, Australia could start reducing its greenhouse emissions from transport now:
- Ethanol produced in Australia reduces greenhouse emissions by 37% to 60% for each litre of ethanol in comparison with petrol; and
- Biodiesel reduces greenhouse gases by 75% in comparison with diesel.
The BAA believes that an Emissions Trading Scheme will have a significant impact on greenhouse emissions from transport but only if:
- The Scheme ensures there is a significant price differential between biofuels and petrol and diesel; and
- The Scheme includes all alternative fuels based on their greenhouse benefits.
“GM Holden Australia is developing a flexibly fuelled ethanol vehicle and this is the other part of the solution for Australia. These vehicles will enable Australians to make best use of biofuels as we scale up the industry” says the Biofuels Association of Australia.
“In one of its scenarios the Forum has found that biodiesel from algae could produce in excess of 30% of Australia’s transport fuels. This would see biodiesel as a major fuel in its own right. Not only that but it would impact very little on arable land”, says BAA CEO Bruce Harrison.
- There are already companies in the Australian biofuel industry that have been putting their own money into developing second generation feedstocks like algae and mustard seeds for biodiesel, and research into improving ethanol yields from sorghum and sugar cane.
- These efforts need stronger support from Government.
“Without greater government action now it is unlikely that Australia will be prepared if it needs to abruptly change the transport system (such as in the case of a near-term peak in global oil production)” (CSIRO Future Fuels Forum, 2008). But what about the food versus fuel argument? “…it has also become clear that biofuel demand for agricultural feedstocks is only one factor of several factors driving food prices. Food prices have also been affected by higher transport and farm production costs due to higher oil prices, droughts, a global draw down in food stocks over several years, increased demand from growing economies like China and India and general market trading volatility.” (CSIRO Future Fuels Forum, 2008). In fact the recently released Gallagher Report (UK) states that only 1% of cropping land is used for biofuels. The CSIRO Future Fuels Forum Report will be available on the BAA web site shortly. Biofuels are better — for greenhouse-friendly transport, energy security and better health.
Contact: Bruce Harrison — Chief Executive Officer Biofuels Association of Australia
Peak body for the Australian Biofuels Industry (07) 3010 9338 — bruceharrison@biofuelsassociation.com.au
— www.biofuelsassociation.com.au
