Biodiesel in Australia
Today, the world is talking about energy efficiency as an effective
weapon against global warming. Australia is no exception. The country
has started to take effective steps in the field of bio fuel. Bio fuel
is available in Australia in two forms – bio diesel and ethanol. The
latter can be produced from sugarcane or grains. The article aims at
giving you an insight into Australia’s alternative fuel initiatives.
Legislation
As per Australian legislation, there is a 10% cap on the
concentration of fuel ethanol blends. As per industry standards, a blend
of 90% unleaded petrol and 10% ethanol is termed E10. E10 is sold
through service stations of reputed brands like BP, Caltex, and Shell
etc. E10 fuel is mostly available in Queensland and New South Wales
regions.
The Australian Government has set an ambitious target to produce and
sell 350 million litres of E10 fuel by the year 2010. The government
expects this target to be an effective measure to combat the looming
threats of global warming. The government is also drafting a new
legislation on bio diesel.
Taxation
In Australia, domestically produced bio diesel and ethanol are exempt
from Excise tax till July 2011. In contrast, an excise of 38.143 cents
is applicable per litre of petrol. After July 2011, Australian bio fuel
is likely to attract 2.5 cents of excise per litre. This excise amount
will be increased in stages until the ceiling of 12.5 cents per lire is
reached.
Production Target
The Federal Government of Australia has set an industry target of 350
million litres per year by 2010. The government is also extending
capital grants to prospective producers. In 2006, both the premiers of
Queensland and New South Wales have made blending of ethanol with petrol
compulsory.
Marketing
Popular Australian bio fuel E10 is available through outlets of BP,
Caltex, Shell and United Brands. Other smaller companies also sell bio
diesel and ethanol mixed fuels. As per industry standards, E10 is
popularly blended with the 91 RON “regular unleaded” fuel. BP has made
considerable inroads in the alternative fuel market. The company plans
to open BP branded service stations in New South Wales. It has taken a
target to open about 50 additional service stations by the end of this
year. In the coming years, the number of service stations is expected to
increase manifold.
GM-Holden Company is planning to roll out locally made Holden
Commodores, which is expected to run on E85, an alternative variety of
bio fuel. According to the company sources, GM-Holden plans to become
more and more dependent on bio diesel and bio fuel for its products in
future.
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