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Biofuels/Bio-energy
Biofuels are fuels produced from renewable organic sources or ‘feedstocks’. The term generally refers to fuels for transportation and includes ethanol and biodiesel.
Ethanol is derived from agricultural feedstocks (such as grain, molasses and starch products) and is used as an extender for petrol. Biodiesel is made from new or used feedstocks such as soybean, canola and palm oil, and vegetable or animal fats (tallow). Biodiesel is used on its own or as an extender in a blend with automotive diesel.
Ethanol and biodiesel have the best commercial prospects in Australia and are the most common types of biofuels produced and used in Australia. This is, in part, due to current production technologies, feedstock availability and fuel usability. Feedstocks predominantly used in Australia for ethanol are waste starch, molasses and co products of food production, with tallow and used cooking oil the main sources for biodiesel.
Biofuels research is focused on second-generation biofuels technologies. These technologies use a wider range of feedstocks, including non food crops and agricultural waste products (such as wood, cereal straw and algae), to produce fuel. Compared to biofuels produced using current technologies, second generation biofuels offer the potential to significantly reduce the impact of biofuels on the environment and minimise the impact on food and livestock feed. Full-scale commercial production of second generation biofuels is still some years away and is dependent on further research and development.
Australian Government biofuels policy
The Australian Government is investigating a range of alternative transport fuels, including biofuels, to reduce our reliance on fossil fuels and contribute to the reduction of greenhouse gas emissions.
Australian Government biofuels policy is managed by several departments:
- Department of the Prime Minister and Cabinet provides overall leadership on biofuels policy.
- Department of Resources, Energy and Tourism has primary responsibility for energy policy, including biofuels.
- Australian Taxation Office administers biodiesel production grants through the Cleaner Fuels Grants Scheme.
- AusIndustry administers the Ethanol Production Grants Program.
- Department of the Environment and Water Resources has responsibility for environmental aspects, such as fuel quality standards and air quality issues, and administers a number of measures to improve consumer confidence in biofuels.
DAFF is monitoring the development of a domestic biofuels industry, with particular attention to opportunities and challenges for our portfolio industries. The main areas of interest include biofuels feedstocks and on-farm use of biofuels. DAFF, through the Australian Bureau of Agricultural and Resource Economics, undertakes economic studies of biofuels, which include assessing the implications of global developments in biofuels production for Australian agriculture.
The Australian Government is currently undertaking an internal review of existing biofuels programs and policies. The review will examine the outlook for the industry and inform future policy decisions. The outcomes of a number of other government policy reviews and initiatives, which are currently under way, could also have implications for the government's future policy directions for alternative fuels, including biofuels.
The government is targeting its investment in biofuels at second-generation technology. In October 2008, the government launched the $15 million Second Generation Biofuels Research and Development Program. This program will be administered by the Department of Resources, Energy and Tourism.