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Looking for Biofuel in Australia
  • Shifting to a carbon-neutral economy will take decades in Australia, but we can begin by using biofuel in vehicles. Biofuel in Australia comes in two types: biodiesel and engine-ready ethanol, which are produced from vegetable oil, grain and sugarcane. Commercial producers of ethanol have established a presence in nearly every state.

  • Biodiesel is made from used oils and fats in restaurants, homes, and industrial settings. Biodiesel can save you money and leaves the exhaust smelling like something cooking. This proves to be popular with motorists because of its low cost and easy use (some vehicles can switch from fossil to renewable diesel without retooling) but some watch out for diluted fuel that can damage their engines.

    Budget Direct Insurance

  • The maximum blend of ethanol to diesel fuel is set at 10%, called E10 and available with both big and smaller independent refuelling stations. The largest retailer is BP, having sold over 100 million litres in Queensland alone.

  • Of all states and territories, Queensland has the most potential for biofuel sourced from sugarcane, as it thrives in the sunny climate and the local motorists are the most aware about alternative fuel, having been the target of focused government-led campaigns.

  • Australia's government is attempting to encourage the growth of this alternative fuel as an industry by holding off on new excise taxes until 2011, in contrast to petrol, which is levied around 40 cents per liter. The biofuels usage target set for 2010 is 350 million barrels. The excise tax will gradually raise to the curent level for petrol by 2015.

  • The biofuel trend has also made its impact on Australia's commodities sector, as galloping grain (corn) prices in the US over the past couple of years have raised the cost of food and basic commodities for many of the world's developing and first-world countries.
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