Australia’s biofuels market in ‘freefall’, says new report
A major new report on biofuels in Australia paints a bleak picture for the industry, describing a six-year slump.
Compiled and published by APAC, an independent consultancy to the Australian biofuels industry, the latest annual client report is entitled Australian Biofuels 2017. APAC have been preparing client reports on the biofuels industry since 2006.
Key findings of the report include the observation that fuel grade ethanol consumption is at a six year low and bio-based diesel consumption is plummeting, in turn causing the industry to collapse.
On the positive side, the report notes that Australian innovators continue to invest in advanced biofuels.
Motorists shunning the use of ‘green’ fuel grade ethanol is regarded as a key factor behind the six-year slump. Total annual fuel-grade ethanol consumption dropped more than 95 megalitres (ML) in 2016, reaching its lowest level since its 319ML peak in 2010-11.
Overall demand for biofuels fell by 63% in 2015-16, primarily driven by Australia’s sharp decline in biodiesel consumption.
“Australian motorists have been shunning ethanol blended fuel by switching to other grade fuels or seem unconvinced of the benefits of E10 (10% ethanol blended with petrol).” Australian Biofuels 2017 co-author and APAC Biofuel Consultants joint chief executive officer, Mike Cochran, said.
“But more startling, the report reveals the Australian biodiesel market is in freefall,” he said.