Files
Details
Title
A Viable Biofuels Industry in Australia?
Author(s)
Wright, John
Subject(s)
Issue Date
Aug 15 2007
Publication Type
Conference Paper/ Presentation
DOI and Other Identifiers
10.22004/ag.econ.124496
Record Identifier
https://ageconsearch.umn.edu/record/124496
PURL Identifier
http://purl.umn.edu/124496
Language
English
Total Pages
7
Note
Transport fuels in Australia are overwhelmingly
based on petroleum products; petrol, diesel and
LPG are the primary fuels. The concept of ‘peak
oil’ is now within the arena of public debate with
the realisation that this will result in rapidly increasing
oil, and therefore transport fuel, prices. When
this is coupled with instability in areas of the world
that contain most relatively easily extractable oil
reserves, and hence supply security issues, at
least two drivers for the exploration of alternative
transport fuel supplies are clear.
One alternative to supply at least the part of Australia’s
future transport fuels is the range of
biofuels that can be made from agricultural products
such as sugar, wheat and oilseeds. There
are, however, a myriad of issues associated with
that simple statement. These include:
• how much of Australia’s fuel needs can be met
from biofuels?
• the potential competition between food and
‘energy’ crops
• do we have the water/soil quality to make the
impact required?
• how do biofuels compare with alternatives
such as gas and coal conversion to liquids?
• would a carbon price enhance the uptake of
biofuels?
• is there a role for genetic modification of
energy crops?
• what is the impact of ‘second generation’
conversion technology?
• what policy regime should be adopted to
optimise biofuels viability?
From the above incomplete random list of issues, it
can be seen that they are a complex mix of economics,
technology and policy.
This paper examines the current state of the biofuels
industry in Australia and explores possible
futures for the biofuels industry in the light of the
issues above.