Biofuel is fuel that is produced from organic matter (biomass), including plant materials and animal waste. It is considered a renewable source of energy that can assist in reducing carbon emissions. The two main types of biofuel currently being produced in Australia are biodiesel and bioethanol, used as replacements for diesel and petrol (gasoline) respectively. As of 2017 Australia is a relatively small producer of biofuels, accounting for 0.2% of world bioethanol production and 0.1% of world biodiesel production.
In 2016–17, biofuels contributed only 0.5% of the total liquid and gaseous transport fuel energy mix in Australia.
Total commercial biofuel production for 2018 is estimated at 290 million liters (ML): 250ML of ethanol and 40ML of biodiesel.
This article mainly deals with biofuels for personal vehicles, though cooking, heating and electricity generation can also use biofuel. Historically in Australia cooking and home heating have been accomplished by burning wood, a biofuel. 909,000 households in Australia still used firewood as their main heating method in 2005, with a further 300,000 using firewood occasionally.
Types of Biofuel in Australia
Biodiesel The Fuel Standard (Biodiesel) Determination 2003 for Australia defines biodiesel as 'a diesel fuel obtained by esterification of oil derived from plants or animals.
Biodiesel is usually made from vegetable oil, animal fats (tallow) or used cooking oil. Production of biodiesel is created through the reaction of these substances with an alcohol such as ethanol or methanol with the presence of a catalyst in processes called transesterification and esterification to produce mono-alkyl esters (biodiesel) and glycerine (by-product). In Australia, the main feedstocks currently in use are tallow, used cooking oil and oilseeds.
Biodiesel is used as fuel for vehicles and virtually all engines that take diesel can use biodiesel. Biodiesel can be used in its 100% pure form; however, it is commonly used as biodiesel fuel blends to reduce levels of hydrocarbons, carbon monoxide and particulates from diesel-powered vehicles. Biodiesel fuels are available in a number of different blend levels. The names indicate the percentage of biodiesel the fuel contains, with B5 containing 5% biodiesel. Biodiesel blends, most commonly B5 and B20, are becoming increasingly available at service stations in all Australian states. Up to 5% biodiesel can be included in any diesel sold in Australia without additional labelling.
Australia does not produce renewable diesel, which differs from biodiesel. However, exports of tallow to Singapore for the manufacture of renewable diesel have increased significantly in recent years, due to reduced demand from biofuel refineries in Australia.
Bioethanol
Bioethanol, is colourless alcohol made by the fermentation of biomass, using glucose derived from sugars (for example from sugar cane, sugar beet or molasses), starch (corn, wheat and grains) or cellulose (forest products). Ethanol produced from renewable energy sources, biomass, is the most promising biofuel for the future.
In Australia, there are three major fuel ethanol production facilities that produce ethanol primarily from waste wheat starch, grain sorghum and molasses. The total capacity to produce ethanol from these facilities is around 440 million litres a year. Approximately 68% of this production occurs in New South Wales, at a single production facility in Nowra.
Ethanol in its pure form can be used as a fuel for vehicles, but like biodiesel, it is usually mixed with petroleum to produce a blended motor fuel. By blending ethanol and petroleum it oxygenates the fuel mixture, meaning it will burn more completely, thus reducing the amount of harmful emissions. Ethanol fuel blends are available in a number of different blend levels. The names indicate the percentage of ethanol the fuel contains, with E10 containing 10% ethanol and E85 containing 85% ethanol. The most common blend is E10, which is available at more than 600 service stations nationally. E85 is offered through a smaller number of fuel outlets, targeting specialised vehicles.
E85 vehicles The Fuel Quality Standards Act 2000 relating to E85 states that the fuel may only be used in vehicles that have been specifically designed or modified to use E85. These include flexible-fuel vehicles (FFV) and V8 racing supercars. The first FFV available in Australia was the Saab BioPower 9.3 and 9.5 which coincided with United Petroleum launching and selling E85 at two of its service stations in Sydney and Melbourne in 2007. Caltex followed in 2010, launching its E85 product Bio E-Flex made specifically for flexible-fuel vehicles. Holden announced at the same time that Caltex E85 would be suitable for vehicles within its Commodore VE Series II range. The Supercars Championship motor racing series have used E85 since the beginning of the 2009 season.V8 Supercars to switch to ethanol Sydney Morning Herald 10 October 2008
E85 is available at selected service stations around Australia. Vehicles compatible with E85 can also run on petrol or E10.
Sources Biodiesel Biodiesel production facilities in Australia use feedstocks of animal fats (tallow), used cooking oil (recycled yellow grease) and a range of vegetable oils.
There has been a dramatic decline in biodiesel consumption in Australia since 2015. The Australian production of biodiesel is estimated at only 40ML in 2017 and 2018. Unfavourable conditions of limited mandate support, low international oil prices, high feedstock prices and insufficient tax relief to offset high feedstock prices led to the closure of a majority of the production facilities, resulting in a low production rate for the nation. Australian Renewable Fuels, the largest biodiesel producer in Australia, closed in early 2016. APAC Biofuel Consultants measured Australian total biodiesel consumption over several years. Consumption peaked in 2014–2015 at a value of 442 ML but crashed dramatically post July 2015 – 2016 to 35 ML due to the reasons stated above.
Australia exports non-GM oilseeds to the EU for the production of biodiesel.
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In Australia, there are three established producers in New South Wales and Queensland that produce a total capacity of 440ML per year. The largest ethanol producer in Australia is the Manildra Group in Bomaderry, which produces 300 million litres of ethanol using wheat waste starch. This corresponds to approximately 68% of total ethanol production.
Queensland has two ethanol plants, one in Dalby operated by United Petroleum and a smaller plant in Sarina operated by Wilmar (Sucrogen). The Dalby plant is located in the Darling Downs region that grows sorghum, and the plant buys approximately 200,000MT of sorghum grain a year from local growers in the area. This amount of sorghum grain can produce 8 million litres of ethanol. For reference 1 MT of sorghum grain can produce 400 litres of ethanol. In mid 2017, the plant announced a US$20million investment to boost production capacity to reach 100 million litres a year.
The second Queensland ethanol plant is operated by Wilmar and produces its ethanol by fermenting molasses, a by-product of sugar production, producing 60ML of ethanol per year.
A number of new ethanol plants have also been proposed for the near future:
A North Queensland Bio-Energy (NQBE) proposal on the construction of a US$400 million sugar ethanol plant in Ingham to produce over 90 million litres annually. An ethanol plant at Deniliquin to produce up to 115 million litres of ethanol a year from wheat. Australian Renewable Energy Agency (ARENA) has provided funding for Renewable Developments Australia to create an ethanol plant for US$600 million to produce 350 million litres of ethanol from sugar cane and sorghum. A Queensland Austcane Energy proposal for US$180 million sugar cane ethanol plant that will produce 100 million litres of ethanol annually.
Second-Generation Biofuels There has been a significant push in research in the development of first-generation and second-generation biofuels. New feedstocks under development include Indian mustard seeds (Western Australia), Millettia pinnata (Queensland, Western Australia), Moringa oleifera (Western Australia) and algae (Queensland, South Australia, Victoria). Research is currently being undertaken by several Australian Universities and the CSIRO into other potential new feedstocks such as cyanobacteria, lignocellulose, pongamia and mallee. Some of these have been successfully demonstrated, such as algae-based fuels, but as yet are not commercially viable.
Syngas and Biochar There are a number of projects in Australia developing technology to produce commercial quantities of syngas and biochar. Syngas is a fuel gas mixture of carbon monoxide, hydrogen and other hydrocarbons, produced by incomplete combustion of biomass under low oxygen conditions (pyrolysis). The process produces biochar as a coproduct, which can be substituted in any application that uses coal, or used as a soil amendment to reduce nitrogen loss and improve the microbiota.
Biofuel Production Facilities +Biofuel Production Facilities In AustraliaCompanyTypeLocationTotal Installed Capacity (ML)/YearFeedstockStatusAs ofDalby BioRefineryEthanolDalby, Qld80SorghumIn Production2012Manildra Ethanol PlantEthanolBomaderry, NSW300Waste starchIn Production2012Sucrogen BioEthanolEthanolSarina, Qld60MolassesIn Production2012ARfuels BarnawathaBiodieselBarnawatha, Vic60Tallow, Used cooking oilClosed2016ARfuels Largs BayBiodieselLargs Bay, SA45Tallow, Used cooking oilClosed2016ARfuels PictonBiodieselPicton, WA45Tallow, Used cooking oilClosed2016ASHOILBiodieselTom Price, WAUnknownUsed cooking oilIn Production01/06/2015Biodiesel Industries AustraliaBiodieselRutherford, NSW20Used cooking oil, Vegetable oilIn Production01/06/2015Ecofuels AustraliaBiodieselEchuca, Vic1.5Canola oilIn Production01/06/2015Ecotech BiodieselBiodieselNarangba, Qld30Tallow, Used cooking oilIn Production01/06/2015Macquarie OilBiodieselCressy, Tas15Poppy Seed oil, Waste Vegetable oilIn Production01/06/2015Neutral FuelsBiodieselDandenong, VicUnknownUsed cooking oilClosed01/06/2015Smorgon Fuels-BioMax PlantBiodieselLaverton, Vic15-100 (prior to closure)Tallow, Juncea oil, Canola oilClosed01/06/2015Territory BiofuelsBiodieselDarwin, NT140 (prior to closure)RBD Palm oil, Tallow, Used cooking oilClosed01/06/2015
Government support Two Australian states have introduced biofuel mandates- Queensland and New South Wales. New South Wales requires bioethanol to constitute 6% of petrol sales, essentially meaning that 60% of all petrol sales need to be E10. The Queensland mandate currently requires service stations to ensure that ethanol makes up 3% of their total regular and ethanol-blended unleaded petrol sales each quarter. The mandate commenced on 1 January 2017, with customers remaining free to choose the fuel they use. From 1 July 2018, the Queensland biobased petrol mandate will increase to 4%.
There is a degree of controversy surrounding the ethanol mandates. The Productivity Commission recommended in 2017 that both the NSW and Queensland mandates be axed by the end of 2018, saying that they affect competitive dynamics and end up costing consumers more due to premium fuel substitutions.
The Queensland biobased diesel mandate requires 0.5% of all diesel fuel sold to be biodiesel. The New South Wales mandate stipulates that biodiesel be at least 2% of all diesel sold.
The Queensland government has created a number of programs aimed to make the state the center of manufacturing and producing biofuels for commercial production for military, maritime and aviation uses.
Regulation and Taxation