Australian state parliament refuses to push for higher biofuels mandate

A committee of the Parliament of Queensland has decided not to suggest increasing the Australian state’s biofuel mandate.

The committee chose not to recommend increasing the mandate despite admitting that the current 2% blending level is ‘unlikely’ to drive industry growth.

AgForce, a lobbying organisation for Queensland agriculture, and a Member of Parliament have filed a report to Queensland Parliament questioning the committee’s reasoning.

According to AgForce’s grains president Wayne Newton, the decision is in contrast with the mandate’s main goal of boosting Queensland economy.

Newton says the 2% blending level is only marginally higher than current production levels, and it will not bring additional investment into the area.

Katter's Australian Party MP Robbie Katter, who co-authored the report, says that the Dalby Bio-Refinery in Queensland is only operating at 40% capacity.

Katter says the state’s existing production capacity was more than 4% and that his party is advocating for the biofuel mandate to be increased to 5%.

Recently the Australian government released a biofuels consultation paper about incremental increases to the mandate.

Although the committee did not push for a higher initial mandate, it suggested the figure should be increased as soon as practicable.

The committee unanimously agreed the bill should be passed with bipartisan support.