logo
menu

Biofuels Association of Australia rejects report attacking biofuels in Queensland

The Biofuels Association of Australia (BAA) has strongly rejected claims from the Federal Productivity Commission that the biofuels industry fails to support the agriculture sector or the community.

In a recent report to Australia’s government, the Productivity Commission urged Queensland, New South Wales and the Commonwealth governments to stop supporting the biofuels industry by the end of 2018, while also dismissing claims that biofuels mandates had created jobs.

BAA CEO Mark Sutton has strongly criticised the conclusions and recommendations made by the report. “To claim that biofuel mandates are causing increased petrol prices is not supported by any hard evidence,” he said in a press release.

“Petrol prices are largely determined by international factors including the oil price – to suggest that a biofuel mandate which encourages motorists to buy E10 – a blended product – drives up fuel prices, is not accurate.”

The controversy over biofuels comes as the Federal Government is looking to overhaul fuel policy through a review of its Fuel Quality Standards Act 2000 to bring Australia in line with other countries around the world.

“Australia is lagging badly behind on standards for air quality and pollution threatening the health of all Australians,” Sutton said.

“If new standards are adopted ethanol can deliver a premium quality fuel at a 10 to 15 cent discount.

“The biofuel industry does create jobs particularly in Queensland where two ethanol plants are operating. The United plant at Dalby is currently at capacity and is considering further expansion which will create more jobs. The Wilmar plant at Sarina, near Mackay, also supports the sugar cane industry which is currently facing challenging times following Cyclone Debbie.”

Sutton said in the press release that any change to the existing biofuels legislation would threaten existing jobs and major investments in Queensland.

 





224 queries in 0.503 seconds.