Ethanol was first blended with petroleum in this country in 1996. This happened
in Cairns and the practice has gained momentum around Australia since.
Today, many consumers are opting to use E10 in modern vehicles, and many commercial
organisations, such as mining companies or truck and bus fleets, have embraced biodiesel
blends like B20.
In fact, the APAC Biofuels Consultants report on Australian Biofuels 2009, found
that in 2008, ethanol contributed to more than 1.2% of petrol volume, and that 'ethanol
blended' sales increased by 180% from 2007 to 2008. Biodiesel consumption made up
around 0.4% of all diesel fuel used in Australia for road transport.
These figures are expected to rise as the availability and demand for biofuel blends
increase. In 2008-2009, Australia saw rapid growth in consumer acceptance and retail
outlets for E10 sales. The APAC research further highlighted that the number of
retail outlets increased by 24% to 1,575 by mid 2009, predominantly in New South
Wales, Queensland, Victoria and South Australia. Consumer acceptance of ethanol
is growing. Government policy and mandates also play a key role in increasing the
usage of biofuels.
Biofuels & the Australian Government
In Australia, biofuels have national and statewide endorsement for their increasing role in transport.
Under the national and state government fuel programs, over $2 billion has been invested by the Australian petroleum industry to produce petrol and diesels which significantly reduce vehicle greenhouse gas emissions.
Indeed, there are Federal grants and initiatives to support the growth of the biofuels industry. These are mainly focused on the development and commercialisation of biofuels.
The Ethanol Production Grants and the Biofuels Research and Development Program are two such initiatives.
On a state level
The New South Wales Government has been active in this area as well. It has legislated a mandate for ethanol sales under the NSW Biofuels Act that requires a phase in to 6% of the volume of unleaded petrol sold in the state to be E10. This will progress to the replacement of all regular unleaded petrol in New South Wales with E10 by July 2011. A 2% biodiesel mandate rising to 5% as supply becomes available has been introduced. The Queensland Government looks like it will follow suit, and has recently drafted legislation which will introduce an ethanol mandate requiring a minimum ethanol blend of 5% to be sold throughout Queensland in place of regular unleaded petrol.
The Victorian Government has adopted its own Biofuels Industry Action Plan and Biofuels Infrastructure Grants Program. In January 2009, this saw a $2 million grant allocated to a biodiesel producer plant in regional Victoria, which now operates as an important biodiesel blending and storage facility.
Other states, such as South Australia and Western Australia, have similar action plans and targets that will help shape the biofuels industry in the future.
The Australian Biofuels Industry
In October 2009, the federal government set up a $560-million Centre for Renewable Energy to promote commercial opportunities for biofuels, solar, wind and geothermal energy. Research work is already underway looking into new generation biofuels production, with Australian experts and scientists playing a role.
Here's a quick look at some initiatives in Australia and overseas:
CSIRO
The Australian Commonwealth Scientific and Research Organisation is assessing current technology for developing second-generation biofuels from lignocelluloses (biomass from plant material). Its research has shown that under ideal conditions, algal biodiesel can be produced at a lower cost than fossil diesel, says Tom Beer, CSIRO's stream leader for its transport biofuels division. "In a perfect world," says Dr Beer, "an algal lake 100 km by 100 km would meet all of Australia's transport fuel requirements."
Algal Fuels Consortium
Australia's Algal Fuels Consortium is developing a "pilot-scale" second-generation biorefinery for production of biodiesel from algae on South Australia's Torrens Island. The work has been boosted by a $2.724 million Department of Resources, Energy and Tourism research grant to the consortium, which includes the South Australian Research and Development Institute and Flinders University.
University of Melbourne
The University of Melbourne Energy Research Institute has assembled a multidisciplinary team to examine the production and fermentation of lignocellulosic biomass, and the downstream processing of fuels from this and algae. It also aims to develop engines that can work at high efficiency regardless of fuel composition.
Coskata
Coskata is an American renewable energy company whose technology enables low-cost production of ethanol from a variety of sources like municipal solid waste, agricultural and forest waste, bagasse and many other materials. Its "flex ethanol" facility in Madison, Pennsylvania, already runs 24 hours a day to turn wood chips into ethanol. Coskata says that, compared with standard petrol, its cellulosic ethanol reduces greenhouse gases by about 96% and uses half as much water.
Synthetic Genomics
This California-based firm is using synthetically produced microorganisms to produce ethanol and hydrogen. It was founded in part by J Craig Venter, who earlier had been a driving force in the race to sequence the human genome. Currently, the company says it's working to produce biofuels on an industrial scale using recombinant algae and other microorganisms.
Sapphire Energy
This California-based company, whose seed investors include Bill Gates and the Rockefeller family, has held preliminary talks with Austrade about establishing algae cultivation in Australia. Chevron is also involved in examining algal fuels production, as are many other new companies.
There is a vast collection of companies, government bodies and organisations involved in the biofuels industry. You can find out more about these organisations and their approach to biofuels by accessing the Biofuels Association of Australia (BAA) website. The BAA is the peak industry body for the Australian biofuels industry, representing ethanol and biodiesel producers, feedstock suppliers, technology providers, independent and major oil companies, equipment manufacturers, mining and construction companies and others.
The Future of Biofuels
In Australia, there are a number of organisations, companies and individuals that are dedicated to developing the next generation of biofuels. Already, some exciting advancements have been made including lignocellulosic ethanol and algae based biofuels. These alone offer promising feedstocks that yield significantly more volumes of biomass than traditional sources. There are at least six organisations researching algae for biodiesel in Australia.