Australia’s record low fuel reserve is an important topic that needs to be addressed with urgency.  

Australia’s record low fuel reserve is an important topic that needs to be addressed with urgency.  Most of our Nation’s fuel is now imported after the closure of a number of Australia’s oil refineries, half of it coming from the South China Sea.  The International Energy Agency claims if imports were blocked or withheld, Australia would run out of oil in just 49 days, rather than the recommended 90 days.  Australia is one of the only countries who have no indigenous supply of petrol and most other countries have moved to ethanol.

Ethanol presents a huge opportunity for the Queensland economy.  Global demand for biofuels is increasing and local consumers are seeing the benefits of lower priced ethanol blended fuels.  Last year the ethanol mandate was 3% of the total volume of petrol sold in Queensland. This was introduced after being forced through Parliament by the KAP. The mandate is due to increase to 4% from July 1, 2018.

KAP wants to increase the ethanol mandate from 4% to 10% by 2025.  This will provide great opportunities for producers and local manufacturers and processors, as well as increasing demand for agricultural products.

An increased mandate would contribute to lower petrol prices at the bowser, reduce emissions and provide a critical boost to Queensland’s agricultural industry. It would encourage companies to commit to investment in bio-fuel projects in North Queensland. This would create a boost to jobs in regional areas and ensure further capital investment in the sector.

The Queensland Renewable Fuels Association in conjunction with the Burdekin Shire Council will be holding an event ‘Growing Renewable Fuels in Regional Qld – Project development and opportunities in the North’ where key industry leaders will be highlighting the importance of enabling biofuel policy, current and emerging renewable fuel technologies, updated project developments, future fibre and co-product opportunities, in Ayr this June. See our What’s on section in KAP Real News for more information.

Shane Paulger
KAP President