Biofuels are most commonly seen in Australia as biofuel blends - using a low percentage of ethanol or biodiesel. It’s rare to see 100% biofuels, except when used for specialised purposes and trials.

The CO2 effectiveness of biofuels varies, depending on the way it is produced and distributed to consumers.

The New South Wales Government has mandated that regular unleaded petrol be phased out in the state and replaced with E10 by July 2011.

The Queensland Government has proposed to mandate that 5% all regular unleaded petrol sold in Queensland will be E10 from January 2011.

Extensive research and development is now underway for the next generation of biofuels. These will be made from virtually any carbon-containing feedstocks, including switchgrass, woodchips, agricultural residues and other cellulose-based energy crops. Waste streams such as old tyres and municipal solid waste are also being explored.

Currently, some of the most impressive research being undertaken in Australia includes biofuels made from algae.