Call for government to introduce ethanol and biodiesel mandate

A group of national farming bodies have joined forces to call on the federal government to introduce an immediate national mandate for ethanol and biodiesel to bolster fuel security, support regional jobs and unlock new value-adding opportunities for Australian agriculture.

The National Farmers' Federation, GrainGrowers, Australian Sugar Manufacturers and CANEGROWERS are demanding that the government introduce an immediate national mandate for ethanol and biodiesel, a pathway to grow demand for Australian-made ethanol and biodiesel, and include Australian-made ethanol and biodiesel as eligible low-carbon fuels under the Federal Government’s Cleaner Fuels Program.

National Farmers Federation CEO Mike Guerin said the war in the Middle East and its effects were behind the joint call.

“What this situation has shown is how vulnerable Australia is to global shocks and how quickly disruptions to critical inputs can put food production and regional businesses at risk,” Mr Guerin said.

“Quite simply, we cannot afford to be in this position again.

“Farmers already supply products that power biofuel industries overseas; it’s only logical and smart to support a domestic industry.

“A strong domestic biofuels industry will have the added benefit of helping diversify market opportunities for producers, a key element of risk management.”

GrainGrowers CEO Shona Gawel said she wanted to see locally produced ethanol included in Australia’s fuel mix.

“Australian sorghum and wheat are both well placed to feed into domestic ethanol production,” Ms Gawel said.

“Using more ethanol is a huge opportunity, underpinning improved fuel security, boosting our regional economies, and improving our market diversity.”

CANEGROWERS Chief Executive Dan Galligan said that “after decades of advocacy, the time for action is now”.

“The sugar cane crush is just around the corner, and as they do every year, cane growers across Queensland and NSW will harvest over 30 million tonnes of cane ready to supply sustainably produced sugar for both domestic and export markets – but at the same time, we could also do so much more with this valuable, renewable feedstock.

“Ethanol made from Australian crops like sugarcane can replace a portion of imported petrol and provide a reliable domestic supply.

“Just as we see happening right around the world. An enforced ethanol mandate would build demand and therefore justify new investment in supply, which would underpin new diversified revenue streams for our industry.”

Australian Sugar Manufacturers CEO Ash Salardini said that in the long term, ethanol production could provide more than three billion litres of biofuels.