RFA encourages Australia to consider US ethanol imports over petroleum
The Renewable Fuels Association (RFA) has urged Australia’s energy minister to consider US ethanol imports as a cleaner and more affordable alternative to purchasing oil from the US Strategic Petroleum Reserve.
The letter from RFA president and CEO Geoff Cooper, which was addressed to Australia’s Minister for Energy and Emissions Reduction Angus Taylor, explained that opening the Australian market to ethanol imports would be a positive move for both the country’s economy and air quality, and would encourage the rapid development of a domestic biofuels industry.
Recent news reports have highlighted Australia’s request for access to the US Strategic Petroleum Reserve, which Cooper described “as a hedge against potential oil supply disruptions that appear increasingly likely given the volatile situation in the Strait of Hormuz.” He added that ethanol imports would better protect Australian consumers for supply shocks.
Biofuels represent less than 2% of Australia’s liquid transportation fuel supply, a problem that is compounded by the 5% tariff and customs tax of AUD$0.401 (€0.245) per litre for ethanol imports. “These severe measures have made fuel ethanol imports generally uncompetitive with gasoline and domestically produced ethanol,” Cooper wrote.
“Removing or at least significantly reducing the tariff and custom tax barriers to imported ethanol does not necessitate a complex negotiation with the US Government over our Strategic Petroleum Reserve,” he added. “Nor will it take much time. US ethanol is available today for export to Australia. US ethanol can provide near-immediate relief to your transportation fuel supply shortage with the added benefit of providing Australia with a tangible demonstration of its commitment to carbon reduction.”
As Australia seeks to reduce its carbon footprint in line with the Paris climate goals, increasing the use of ethanol is clearly the right choice.
The letter from RFA president and CEO Geoff Cooper, which was addressed to Australia’s Minister for Energy and Emissions Reduction Angus Taylor, explained that opening the Australian market to ethanol imports would be a positive move for both the country’s economy and air quality, and would encourage the rapid development of a domestic biofuels industry.
Recent news reports have highlighted Australia’s request for access to the US Strategic Petroleum Reserve, which Cooper described “as a hedge against potential oil supply disruptions that appear increasingly likely given the volatile situation in the Strait of Hormuz.” He added that ethanol imports would better protect Australian consumers for supply shocks.
Biofuels represent less than 2% of Australia’s liquid transportation fuel supply, a problem that is compounded by the 5% tariff and customs tax of AUD$0.401 (€0.245) per litre for ethanol imports. “These severe measures have made fuel ethanol imports generally uncompetitive with gasoline and domestically produced ethanol,” Cooper wrote.
“Removing or at least significantly reducing the tariff and custom tax barriers to imported ethanol does not necessitate a complex negotiation with the US Government over our Strategic Petroleum Reserve,” he added. “Nor will it take much time. US ethanol is available today for export to Australia. US ethanol can provide near-immediate relief to your transportation fuel supply shortage with the added benefit of providing Australia with a tangible demonstration of its commitment to carbon reduction.”
As Australia seeks to reduce its carbon footprint in line with the Paris climate goals, increasing the use of ethanol is clearly the right choice.
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