The Western Australian Biofuels taskforce has recommended a target of 5 per cent biofuels consumption by 2010, switching to a mandate by 2011 if the 2010 target is not achieved.
The Western Australian Biofuels taskforce has recommended a target of 5 per cent biofuels consumption by 2010, switching to a mandate by 2011 if the 2010 target is not achieved.
The taskforce was convened in February 2006 to review and address key opportunities and impediments to developing a local biofuels industry.
Among the report’s 24 key recommendations was for government to provide start-up support for biofuels production facilities, particularly in regional areas, and to provide market leadership and market signals by adopting biofuels in government fuel contracts.
It also recommended incentives for the take-up of biofuels by consumers, including the reduction of stamp duty and vehicle registrations for low-emission vehicles, in addition to public education programs.
Releasing the report this week, Agriculture Minister Kim Chance said WA had the capacity to develop a sustainable biofuels industry.
“I think this is the way forward in taking WA from, where I think we’re behind the eight ball, to being leaders in this field,” Mr Chance said.
The report pointed to the urgency for WA to capitalise on the window of opportunity given by existing federal government incentives, namely the biofuels production grant scheme (until 2011), the phased introduction of excise on biofuels (until 2015) and the Ethanol Distribution Program Infrastructure Upgrade Grants.
Taskforce member and Member for South West, Paul Llewellyn, said the recommendations sought to make the WA biofuels industry market ready in preparation for regulatory drivers at either a state or federal level.
He said volumetric targets were a good short-to-medium-term measure, with a transition to low carbon fuel standard a more effective mechanism in the longer term.
Currently, Perth-based Australian Renewable Fuels Ltd operates the only industrial-scale biofuels plant in WA, producing 45 million litres of biodiesel each year through the conversion of tallow and canola oil.
There are two further biofuels plants proposed for the Kwinana-Rockingham industrial area, Primary Energy’s 160ML facility and Grainol’s 190ML ethanol plant.
ARF chief executive John Lillywhite welcomed the taskforce’s report as a positive and practical contribution to the state’s biofuels industry.
But while there was widespread recognition of the benefits of biofuels, Mr Lillywhite said the take-up had been limited by distribution logistics.
He said demand was particularly strong among mining companies, which were typically big fuel users but also had environmental constraints.
“A lot of big companies are looking to include biodiesel in the mix,” Mr Lillywhite said.
However, he said that, as a manufacturer, ARF lacked the distribution network required to get the fuel to market. ARF, however, admits it needs the cooperation of the major oil companies that tend to own the distribution networks in the big mining provinces to the north.
Mr Lillywhite said the company was in advanced negotiations with a number of major oil companies, and was hopeful that implementation of the taskforce recommendations would help.
