BAA's position on, and the market realities of Biodiesel Standards...
The Biofuels Association of Australia (BAA) position is that:
- Biodiesel blends up to 20% be allowed in both the commercial and retail markets without an approval required.
- The biodiesel component must meet the B100 standard and the resultant blend the Australian Standard for Automotive Diesel.
- Commercial operators be allowed access to blends of greater than 20% biodiesel through an approval process.
- Any approval process agreed for higher level biodiesel blends should be in line with commercial practice, not be time consuming and not include a requirement for Original Equipment Manufacturer approval.
- No requirement for B5 blends to be labelled.
- All biodiesel blends above B5 be labelled to inform consumers that they contain up to 20 % biodiesel.
- The BAA is keen to work with the Australian Government on how best to implement, in Australia where appropriate, new developments in biodiesel standards that are being developed overseas.
The market realities that underpin the BAA position are:
- A majority of the diesel market in Australia is commercial.
- A majority of biodiesel in Australia is already marketed, branded and sold as a B20 blend.
- Commercial consumers (particularly councils, mining companies, and transport companies) want to use B20 blends for the significant greenhouse benefits. These organizations are positioning themselves in preparation for Emissions Trading.
- 15% reduction in greenhouse gas emissions for a B20 blend using biodiesel produced from tallow (CSIRO, 2007. The Greenhouse and Air Quality Emissions of Biodiesel blends in Australia).
- Commercial consumers are already using B20 blends to comply with the Australian Government’s Greenhouse Challenge Program.
- The trend in Europe and the US is for higher than B5 level biodiesel blends.
- The US is developing a new ASTM biodiesel standard to cover a range of biodiesel blends - 6% to 20%.
- Commercial engine manufacturers are providing increasing numbers of B20 and higher biodiesel blend compliant engines to the market place.
- There is inconsistency in the light duty diesel vehicle manufacturers with Volkswagen for instance supporting RME B100 in Europe for all vehicles built after 1996, but only B5 for the same vehicles in Australia.
- The vast majority of Australian biodiesel producers use quality assurance systems to ensure only quality biodiesel is sold into the Australian market.
Australian Government Position
That the diesel standard have a maximum limit of 5% biodiesel and that the biodiesel component must meet the B100 standard and the resultant blend meet the diesel standard.
No labelling will be required for 5% or lower biodiesel blends that meet the diesel standard.
Higher blends will be allowed in the market if they have been approved through the Section 13 Fuel Standards Consultative Committee approval process.
Background
All biodiesel produced in Australia is liable for excise of 38.143 cents per litre.
Biodiesel that meets the B100 Government fuel standard is eligible for the Cleaner Fuels Grant of 38.143 cents per litre.
This grant ensures that biodiesel pays no net tax.
Biodiesel blends currently supplied to the market include B2, B5, B20, B50 and B100.
The current legal situation is that only B100 or blends that meet the diesel standard can be supplied to the market without a Section 13 approval.
