Biofuels—like ethanol and biodiesel (diesel refined from plant oils)—have potential as alternative sources of energy that provide a range of environmental benefits and new opportunities for the Australian rural sector.

Biofuels in Australia – issues and prospects, a new report from the Rural Industries Research and Development Corporation (RIRDC) provides a synthesis of current knowledge about the industry, examining the drivers for this growing industry, the positive and negative impacts on Australia’s rural sector, and ways that the industry can be successfully developed to maximize benefits and minimize risks.

The report was launched in Canberra today by National Farmers’ Federation CEO Mr Ben Fargher, at a Bioenergy Australia meeting.

‘A “whole of agriculture” approach to the issue is of critical importance to the National Farmers’ Federation. This report is a step towards synthesizing a picture of the current situation for biofuels in Australia, and scoping some of the prospects and implications of industry growth,’ Mr Fargher said.

Dr Roslyn Prinsley, RIRDC General Manager for R&D in New Rural Industries, said is important that Australian agriculture approaches this emerging industry in an informed, strategic and rational way, recognising both the benefits and risks.

‘Current processing technology allows us to produce ethanol from feedstocks like sugar and grains, and to produce biodiesel from oilseeds, tallow and used cooking oil. Future technology could see second generation biofuels being produced from new feedstocks, like crop residues, grasses, plantation and farm forestry crops, and a greater range of agricultural and industrial waste streams,’ Dr Prinsley said.

‘Biofuel production has the potential to give farmers new options to diversify their income streams, to offer new employment opportunities, to reduce greenhouse gas emissions and to provide greater fuel security for Australia’ Dr Prinsley said.

‘However, a growing ethanol industry that utilises grain will affect the supply of feedgrain for livestock, especially during drought. This may place upward pressure on the price of grain. There may also be opportunities for intensive livestock producers to get some benefits from biofuels production, such as the availability of high-protein meal as a by-product of ethanol production,’ she said.

‘If the biofuel industry expands to contribute 20% of transport fuels it would have a significant impact on the rural sector. Developing a strategic alternative energy framework is essential if Australia is going to achieve the best possible environmental and economic outcomes that this industry offers,’ Dr Prinsley said.

The lead author, Dr Deborah O’Connell from CSIRO, says that the report gives readers a new way to consider the growing bank of information on biofuel production and use in Australia.

‘There is a lot of great research being done on how to meet Australia’s demand for transport fuels,’ Dr O’Connell said.

‘This report draws together this wealth of disparate information – from growing plants and turning them into fuel through to using them in your car – and looks at the environmental impact of each step,’ she said.

‘It provides a basis to critically assess opportunities and risks and to get a handle on the sustainability credentials of current and future biofuels.’

The Biofuels in Australia project was funded by RIRDC’s Bioenergy, Bioproducts and Energy R&D Program, in partnership with CSIRO’s Energy Transformed Flagship, and with support from the National Farmers’ Federation.

RIRDC invests in research and development on behalf of industry and Government, to support more profitable, dynamic and sustainable rural industries and communities. RIRDC’s investments in R&D for new rural industries provide the rural sector with options for diversification.

Copies of the report are available from RIRDC – call 02 6271 4160, email publications@rirdc.gov.au, or visit www.rirdc.gov.au

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Media enquiries: Martin Field – RIRDC Public Affairs Manager – tel - 02 6272 4735, email - martin.field@rirdc.gov.au
Media enquiries:  John Oakeshott -  02 6272 4819 / 0417 750 481