Australia: Biofuels Annual

  |   Attaché Report (GAIN)   |   AS2022-0029

Ethanol consumption in Australia is forecast to remain stable in 2022 at only 1.1 percent of the gasoline pool, and biodiesel is forecast to increase moderately from very low levels but remain at less than 0.1 percent of the total diesel pool. Australia has very large feedstock (grains and molasses) supplies for bioethanol as well as robust supplies of feedstock (canola, tallow and used cooked oil) for biodiesel production. However, only a very small amount of these are used for domestic biofuels production. There is no federal government subsidy, tax credit or mandate supporting the production or use of biofuels. Only two states have biofuel programs with ethanol and biodiesel mandates, but these mandates are far from being reached. The federal government’s introduction of new fuel standards for gasoline from January 1, 2022 has so far had no impact on the ethanol blend rate in Australia. Recent announcements may encourage increased production of sustainable aviation fuel in the coming years in Australia.

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