Queensland Fails The Biofuels Industry

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8th November 2010, 04:24pm - Views: 1307

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November 2010 


The Biofuels Association of Australia today voiced its frustration at the Queensland Government’s decision

to delay – potentially indefinitely – the implementation of its mandate for E10 fuel in the state.

“It is extremely disappointing to find that the Queensland Government has chosen to take this action at a

vital point in time for the development of renewable and sustainable fuels” said Heather Brodie, CEO of the

Biofuels Association of Australia.  “The industry –

producers, retailers, wholesalers -

has been working

towards this mandate for the last five years.  Millions of infrastructure dollars have been spent in its

anticipation and to now have the rug pulled out from regional and rural Queensland is just nonsensical.”

“The BAA appreciates the negative impact that the Federal Government’s excise policy has on this mandate

and the potential it brings for the importation of subsidised fuels from overseas,”

continued Ms Brodie.

“But surely a better way to deal with the issue is to work with industry and with the Federal Government to

bring about policies that encourage the use of renewable and sustainable fuels”.

“The mandate would have brought about market demand for the existing Queensland producers of ethanol

while at the same time providing the impetus for future investment in the state.  It is completely unrealistic

to expect an industry to invest in production when there is limited

market demand and ever-increasing

policy uncertainty.  We certainly believe that there are other alternatives to dropping the mandate

completely – one of which would be the phasing in of the mandate, similar to NSW in recent years.”

“The investment committed to date has been in anticipation that the mandate would proceed as it had bi-

partisan support in the Queensland Parliament.  The absence of a guaranteed demand will dissipate this

investment and the penetration of the fuel.  We’ll see NSW and Victoria continue to grow in their uptake of

the fuel while Queensland starts to lag behind.”

“Of the petrol cars produced this year, 99.44% of them can take E10.  This change in policy only brings

about further uncertainty for an industry which is already suffering at the hands of the


Government’s excise policy.  For an industry that has the potential to dramatically improve Australia’s fuel

security, reduce our $17billion trade deficit and reduce our carbon emissions it is just disappointing to see

Queensland going backwards instead of forwards” Ms Brodie said.

The Biofuels Association of Australia Incorporated is the peak industry body representing ethanol and

biodiesel producers, feedstock suppliers, technology providers, independent and major oil companies,

equipment manufacturers, mining and construction companies and others.

Media Contact: Heather Brodie, CEO BAA, 0437 932 949 heatherbrodie@biofuelsassociation.com.au

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