Transport fuels shortage? Gen2 biofuels are a real prospect for Australia

Despite its fragmented and underfunded competitive RD&D effort in the biofuels area, Australia has many worthwhile initiatives.

Bioenergy Australia, as the national industry body, provides an effective leadership role in drawing the industry domain together. The National Collaborative Research Infrastructure Strategy (NCRIS) Biofuels Project is a worthy program but further steps, for example the recommended Biofuels Institute, are needed to improve mutual co-operation between Australian researchers and to build and sustain collaborative international arrangements.

ATSE urges the continuation of Australia’s engagement in the International Energy Agency’s Bioenergy Task 39, Commercialising First and Second Generation Biofuels from Biomass, current until 2010, and commends our membership of the Global Bio-Energy Partnership (GBEP) to further enhance meaningful international engagement.

ATSE takes a strong view that the use of biofuels to enhance Australia’s liquid transport fuel security must not be at the expense of food production.

It also emphasises that present Generation 2 biofuel technologies are not cost competitive, that an expanded RD&D effort is required and that biofuels research is fragmented and poorly co-ordinated and needs to be better funded.

It says Australia must enhance the knowledge base of its more promising biofuels resources and build on its significant existing strengths in biofuels research.

The report notes that Australia has limited biofuels production capacity which needs to be supported and that biofuels industry development must be directed not only to the production of economic transport biofuels but also to the creation of profitable co-products

It says Australia needs to recognise the human resources development issues required to provide the range and quantum of skills needed for industry development, both in Australia and overseas. Australia should also should respond effectively to the biofuels sector assistance needs of developing countries.

Australia can valuably draw from both the European Community and US in developing a vision for strategic biofuels research. Furthermore, given the very significant overseas funding, Australia should, where appropriate, conduct much of its R&D work in focused partnerships and/or joint ventures with appropriate international agencies.

Australia needs to develop clear-cut long term policies for biofuels, including an effective balance between ‘technology push’ and ‘market pull’, evaluation of biofuels production and distribution infrastructure and related logistics, a major injection of RD&D funding and better research clustering and cooperation.

A large-scale Australian biofuels industry will have to demonstrate robust credentials in greenhouse gas emissions, land and water impacts, financial viability and social acceptability.

The ATSE Report, Biofuels for Transport: a Roadmap for Development in Australia which was launched at the symposium as a blueprint for the future of Australia's biofuels industry, is available at
http://www.atse.org.au/index.php?sectionid=128