Queensland vows to renew state’s biofuels industry

The state of Queensland, Australia, wants to revive the biofuels industry after fuel ethanol use in the state has dropped from 2.7% to 1.2%, according to Energy Minister Mark Bailey.

“The economic and environmental benefits of ethanol are recognised around the world and we want Queensland to be part of the sustainable energy solution,” he said.

Bailey announced a bill that would be introduced to the Parliament within a month during his recent visit to the Wilmar Bioethanol facility in Sarina, south of Mackay.

Wilmar Bioethanol General Manager Garry Mulvay welcomed the announcement, but said the new bill must create a stable set of policies. He said the ethanol market has been very tough in recent years. The plant, which has an annual capacity of 90 million litres is operating below 70% of capacity.

In 2010, former Labor Premier Peter Beattie had proposed an ethanol mandate, which petered out.

Bailey said details of the policy would be released before the bill was introduced to Parliament.

“We want this to be phased in so Queensland’s industry can ramp up. The use of an ethanol blend will need to be rolled out, over time, in line with production capacity. That way, we are best placed to ensure that any ethanol used and sold in Queensland, came from Queensland,” Bailey added.