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Australian state of Queensland passes biofuels mandate legislation

Increase font size  Decrease font size Date:2015-12-04   Views:338
The northeastern Australian state of Queensland has passed legislation mandating a larger-than-expected ethanol volume in its regular unleaded gasoline sales, but has pushed the start date for the mandate back by a year to July 1, 2017.

Under the Liquid Fuel Supply (Ethanol and Other Biofuels Mandate) Amendment Act 2015, ethanol will have to make up 3% of regular gasoline sales and bio-based product make up 0.5% of diesel sales in the state from mid-2017. The legislation was passed by the state parliament late Tuesday.

The ethanol mandate goes further than the 2% proposed under the bill which went to parliament, but the implementation time frame has been delayed by a year to enable consumers and fuel retailers time to prepare for the change.

"In practical terms, the mandate will require E10 to make up 30% of regular petrol sales in Queensland in 2017," said state Minister for Energy and Water Supply Mark Bailey.

The Queensland government plans to undertake a public education campaign ahead of the mandate's planned commencement, the minister added.

"We want to ensure that motorists understand their fuel choices and the benefits provided by biofuels such as ethanol, and that industry also understands its role," Bailey said. "The government recognizes that some fuel retailers will need time to fully adjust to the mandate requirements and to make infrastructure changes in order to sell E10 and there is flexibility to accommodate those adjustments."

Queensland's current consumption of gasoline is around 2,900 megaliters/year, according to a recent report from APAC Biofuel Consultants, prepared for the state's Department of Energy and Water Supply. A 3% mandate would therefore represent an ethanol requirement in the state of about 87 ML/year.

Queensland currently has two ethanol plants, one operated by United Petroleum at Dalby and a smaller facility operated by Wilmar at Sarina.

Dalby and Sarina have nameplate capacities of 90 ML/year and 60 ML/year respectively, but are estimated by APAC to be operating at only around 85%. In addition, United Petroleum is assumed to be supplying around 40 ML/year of ethanol to its interstate operations, leaving Queensland's total supply at around 88 ML/year, which means it has the capacity to meet the 3% mandate.

Australia's consumption of fuel grade ethanol in the financial year to June 30, 2015, is estimated by APAC in its latest report at 246 ML, down 4.6% from the previous year and 23% from a peak in 2010-2011.

The national market is also supplied by Manildra Group's 300 ML/year facility at Bomaderry in Queensland's neighboring east coast state of New South Wales.

Queensland's initial bio-based diesel mandate is expected to be met by existing producers. Queensland's consumption of diesel over the period from the 2011-2012 financial year to 2014-2015 was 6,500 ML.

Installed biodiesel and hydrotreated vegetable oil capacity at nine plants in Australia reached 555 ML/year in 2009. There are currently, however, only three biodiesel plants with nameplate capacity of about 110 ML/year operating across the country, and these are producing just 70 ML/year, APAC estimated.
 
 
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