MEDIA RELEASE - FOR IMMEDIATE RELEASE
7
November 2010
QUEENSLAND FAILS THE BIOFUELS INDUSTRY
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
Federal
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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