Time to get serious about biofuels

Time to get serious about biofuels

Time to get serious about biofuels

Caltex has proposed that federal and state governments, together with industry and other stakeholders, should implement an integrated strategy.

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From the Managing Director

Julian Segal, Caltex Managing Director

Ethanol and biodiesel have been a highly visible – albeit small – part of the fuels mix in Australia for some years now. Clearly there is significant growth potential in these renewable, lower-carbon fuels, and they are here to stay.

In a carbon-constrained world, oil prices will inevitably climb just as surely as oil supplies will inevitably diminish.

This means that the role for biofuels in meeting energy needs is likely to grow in importance. New technologies to produce biofuels from“lignocellulosic” sources such as algae, discussed in this issue of The Star, are especially exciting.

This is good news for Caltex, which actively seeks new business opportunities. We are already Australia’s leading supplier of biofuels blends to retail and commercial customers, and see potential commercial upside in them in future.

However, what the still-fledgling industry needs is a clear, coherent policy framework in which to operate and prosper. At present there is none. Without appropriate government policies in place the biofuels industry may struggle to reach its potential.

That’s why we are proposing that Australian governments, in conjunction with industry and other interested parties, adopt a proactive policy framework that encourages the orderly, continued development of biofuels.

Our proposed framework is practical and achievable. The enclosed TalkingPoint contains a snapshot summary and more information is available in The Star.

Julian Segal