Australian biorefinery under threat of closure

United Petroleum says it is shutting down the Dalby biorefinery in Queensland, Australia, due to a lack of government support and a drop in demand for fuel-grade ethanol.

According to a statement released by the company, the Australian government is 'no longer interested in subsidising the ethanol industry'.

The biorefinery is currently closed for maintenance, a move influenced by high sorghum prices. The facility processes E10 ethanol from red sorghum, most of which is sourced locally.

Australia's Ethanol Production Grants Scheme, intended to stimulate growth in the sector, is scheduled to continue until 2021, though it is unclear if this will still be the case.