Biofuel in Australia

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Biofuel is fuel that is produced from organic matter (biomass), including plant materials and animal waste. It is considered a renewable source of energy that can assist in reducing carbon emissions. The two main types of biofuel currently being produced in Australia are biodiesel and bioethanol, used as replacements for diesel and petrol (gasoline) respectively. [1] As of 2017 Australia is a relatively small producer of biofuels, accounting for 0.2% of world bioethanol production and 0.1% of world biodiesel production. [2]

Contents

In 2016–17, biofuels contributed only 0.5% of the total liquid and gaseous transport fuel energy mix in Australia. [2]

Total commercial biofuel production for 2018 is estimated at 290 million liters (ML): 250ML of ethanol and 40ML of biodiesel. [3]

This article mainly deals with biofuels for personal vehicles, though cooking, heating and electricity generation can also use biofuel. Historically in Australia cooking and home heating have been accomplished by burning wood, a biofuel. 909,000 households in Australia still used firewood as their main heating method in 2005, with a further 300,000 using firewood occasionally. [4]

Types of Biofuel in Australia

Service station at Birmingham Gardens showing E10 fuel for sale. Liberty Service Station, Birmingham Gardens.jpg
Service station at Birmingham Gardens showing E10 fuel for sale.

Biodiesel

The Fuel Standard (Biodiesel) Determination 2003 for Australia defines biodiesel as 'a diesel fuel obtained by esterification of oil derived from plants or animals. [5]

Biodiesel is usually made from vegetable oil, animal fats (tallow) or used cooking oil. Production of biodiesel is created through the reaction of these substances with an alcohol such as ethanol or methanol with the presence of a catalyst in processes called transesterification and esterification to produce mono-alkyl esters (biodiesel) and glycerine (by-product). [6] In Australia, the main feedstocks currently in use are tallow, used cooking oil and oilseeds. [7]

Biodiesel is used as fuel for vehicles and virtually all engines that take diesel can use biodiesel. Biodiesel can be used in its 100% pure form; however, it is commonly used as biodiesel fuel blends to reduce levels of hydrocarbons, carbon monoxide and particulates from diesel-powered vehicles. [8] Biodiesel fuels are available in a number of different blend levels. The names indicate the percentage of biodiesel the fuel contains, with B5 containing 5% biodiesel. Biodiesel blends, most commonly B5 and B20, are becoming increasingly available at service stations in all Australian states. Up to 5% biodiesel can be included in any diesel sold in Australia without additional labelling. [9]

Australia does not produce renewable diesel, which differs from biodiesel. However, exports of tallow to Singapore for the manufacture of renewable diesel have increased significantly in recent years, due to reduced demand from biofuel refineries in Australia. [3]

Bioethanol

Petrol station pump in Sydney selling E10 fuel (green handle) Petrol Station Pump E10 fuel.jpg
Petrol station pump in Sydney selling E10 fuel (green handle)

Bioethanol, is colourless alcohol made by the fermentation of biomass, using glucose derived from sugars (for example from sugar cane, sugar beet or molasses), starch (corn, wheat and grains) or cellulose (forest products). [10] Ethanol produced from renewable energy sources, biomass, is the most promising biofuel for the future. [11]

In Australia, there are three major fuel ethanol production facilities that produce ethanol primarily from waste wheat starch, grain sorghum and molasses. The total capacity to produce ethanol from these facilities is around 440 million litres a year. Approximately 68% of this production occurs in New South Wales, at a single production facility in Nowra. [12]

Ethanol in its pure form can be used as a fuel for vehicles, but like biodiesel, it is usually mixed with petroleum to produce a blended motor fuel. By blending ethanol and petroleum it oxygenates the fuel mixture, meaning it will burn more completely, thus reducing the amount of harmful emissions. [13] Ethanol fuel blends are available in a number of different blend levels. The names indicate the percentage of ethanol the fuel contains, with E10 containing 10% ethanol and E85 containing 85% ethanol. The most common blend is E10, which is available at more than 600 service stations nationally. [14] E85 is offered through a smaller number of fuel outlets, targeting specialised vehicles. [15]

E85 vehicles

The Fuel Quality Standards Act 2000 relating to E85 states that the fuel may only be used in vehicles that have been specifically designed or modified to use E85. These include flexible-fuel vehicles (FFV) and V8 racing supercars. [16] The first FFV available in Australia was the Saab BioPower 9.3 and 9.5 which coincided with United Petroleum launching and selling E85 at two of its service stations in Sydney and Melbourne in 2007. [17] Caltex followed in 2010, launching its E85 product Bio E-Flex made specifically for flexible-fuel vehicles. Holden announced at the same time that Caltex E85 would be suitable for vehicles within its Commodore VE Series II range. [17] The Supercars Championship motor racing series have used E85 since the beginning of the 2009 season. [18] [19]

E85 is available at selected service stations around Australia. Vehicles compatible with E85 can also run on petrol or E10. [20]

Sources

Biodiesel

Biodiesel production facilities in Australia use feedstocks of animal fats (tallow), used cooking oil (recycled yellow grease) and a range of vegetable oils. [21]

There has been a dramatic decline in biodiesel consumption in Australia since 2015. [2] The Australian production of biodiesel is estimated at only 40ML in 2017 and 2018. [3] Unfavourable conditions of limited mandate support, low international oil prices, high feedstock prices and insufficient tax relief to offset high feedstock prices led to the closure of a majority of the production facilities, resulting in a low production rate for the nation. [3] Australian Renewable Fuels, the largest biodiesel producer in Australia, closed in early 2016. APAC Biofuel Consultants measured Australian total biodiesel consumption over several years. Consumption peaked in 2014–2015 at a value of 442 ML but crashed dramatically post July 2015 – 2016 to 35 ML due to the reasons stated above. [2]

Australia exports non-GM oilseeds to the EU for the production of biodiesel. [22]

Saxon

Sorghum crop in Central Queensland, from which ethanol can be produced. CSIRO ScienceImage 4248 Sorghum crop near the coastal town of Ayr in central Queensland 1992.jpg
Sorghum crop in Central Queensland, from which ethanol can be produced.

In Australia, there are three established producers in New South Wales and Queensland that produce a total capacity of 440ML per year. The largest ethanol producer in Australia is the Manildra Group in Bomaderry, which produces 300 million litres of ethanol using wheat waste starch. This corresponds to approximately 68% of total ethanol production. [23] [12]

Queensland has two ethanol plants, one in Dalby operated by United Petroleum and a smaller plant in Sarina operated by Wilmar (Sucrogen). [24] [3] The Dalby plant is located in the Darling Downs region that grows sorghum, and the plant buys approximately 200,000MT of sorghum grain a year from local growers in the area. This amount of sorghum grain can produce 8 million litres of ethanol. For reference 1 MT of sorghum grain can produce 400 litres of ethanol. [3] In mid 2017, the plant announced a US$20million investment to boost production capacity to reach 100 million litres a year.[ citation needed ]

The second Queensland ethanol plant is operated by Wilmar and produces its ethanol by fermenting molasses, a by-product of sugar production, producing 60ML of ethanol per year. [3]

A number of new ethanol plants have also been proposed for the near future:

Second-Generation Biofuels

There has been a significant push in research in the development of first-generation and second-generation biofuels. New feedstocks under development include Indian mustard seeds (Western Australia), Millettia pinnata (Queensland, Western Australia), Moringa oleifera (Western Australia) and algae (Queensland, South Australia, Victoria). [7] Research is currently being undertaken by several Australian Universities and the CSIRO into other potential new feedstocks such as cyanobacteria, lignocellulose, pongamia and mallee. [1] Some of these have been successfully demonstrated, such as algae-based fuels, but as yet are not commercially viable. [3]

Syngas and Biochar

There are a number of projects in Australia developing technology to produce commercial quantities of syngas and biochar. [25] Syngas is a fuel gas mixture of carbon monoxide, hydrogen and other hydrocarbons, produced by incomplete combustion of biomass under low oxygen conditions (pyrolysis). The process produces biochar as a coproduct, which can be substituted in any application that uses coal, or used as a soil amendment to reduce nitrogen loss and improve the microbiota. [26]

Biofuel Production Facilities

Biofuel Production Facilities In Australia
CompanyTypeLocationTotal Installed Capacity

(ML)/Year

FeedstockStatusAs of
Dalby BioRefineryEthanol Dalby, Qld80SorghumIn Production2012 [15]
Manildra Ethanol PlantEthanol Bomaderry, NSW300Waste starchIn Production2012 [15]
Sucrogen BioEthanolEthanol Sarina, Qld60MolassesIn Production2012 [15]
ARfuels BarnawathaBiodiesel Barnawatha, Vic60Tallow, Used cooking oilClosed2016 [3]
ARfuels Largs BayBiodiesel Largs Bay, SA45Tallow, Used cooking oilClosed2016 [3]
ARfuels PictonBiodieselPicton, WA45Tallow, Used cooking oilClosed2016 [3]
ASHOILBiodiesel Tom Price, WAUnknownUsed cooking oilIn Production01/06/2015 [27]
Biodiesel Industries AustraliaBiodiesel Rutherford, NSW20Used cooking oil,

Vegetable oil

In Production01/06/2015 [27]
Ecofuels AustraliaBiodiesel Echuca, Vic1.5Canola oilIn Production01/06/2015 [27]
Ecotech BiodieselBiodiesel Narangba, Qld30Tallow, Used cooking oilIn Production01/06/2015 [27]
Macquarie OilBiodiesel Cressy, Tas15Poppy Seed oil,

Waste Vegetable oil

In Production01/06/2015 [27]
Neutral FuelsBiodiesel Dandenong, VicUnknownUsed cooking oilClosed01/06/2015 [27]
Smorgon Fuels-BioMax PlantBiodiesel Laverton, Vic15-100 (prior to closure)Tallow, Juncea oil,

Canola oil

Closed01/06/2015 [27]
Territory BiofuelsBiodiesel Darwin, NT140 (prior to closure)RBD Palm oil, Tallow,

Used cooking oil

Closed01/06/2015 [27]

Government support

Two Australian states have introduced biofuel mandates- Queensland and New South Wales. New South Wales requires bioethanol to constitute 6% of petrol sales, essentially meaning that 60% of all petrol sales need to be E10. [28] The Queensland mandate currently requires service stations to ensure that ethanol makes up 3% of their total regular and ethanol-blended unleaded petrol sales each quarter. The mandate commenced on 1 January 2017, with customers remaining free to choose the fuel they use. [29] From 1 July 2018, the Queensland biobased petrol mandate will increase to 4%. [30]

There is a degree of controversy surrounding the ethanol mandates. The Productivity Commission recommended in 2017 that both the NSW and Queensland mandates be axed by the end of 2018, saying that they affect competitive dynamics and end up costing consumers more due to premium fuel substitutions. [31]

The Queensland biobased diesel mandate requires 0.5% of all diesel fuel sold to be biodiesel. [30] The New South Wales mandate stipulates that biodiesel be at least 2% of all diesel sold. [28]

The Queensland government has created a number of programs aimed to make the state the center of manufacturing and producing biofuels for commercial production for military, maritime and aviation uses. [3]

Regulation and Taxation

Federal government regulations apply to the quality of petrol and diesel fuel in Australia. The Fuel Quality Standards Act 2000 provides a legislative framework for setting national fuel quality and fuel quality information standards. Fuel quality standards apply to petrol, diesel, biodiesel, autogas and ethanol E85. [32]

Legislation from July 2003 imposes a 10% cap on the concentration of fuel ethanol blends. This was the result of vehicle testing showing that petrol blends containing 20% or more ethanol may cause problems in some older vehicles. There is also a requirement that retailers label blends containing fuel ethanol on the dispenser. [33]

Domestically produced fuel ethanol is currently effectively exempt from excise tax until 30 June 2021 (an excise of 38.143 cents per litre is payable on petrol). [34]

Campaigns

As of 2018 E10 educational campaigns have been introduced by two state governments. The Government of New South Wales and partner NRMA brought in the 'Fuel for Thought' campaign in 2017. [35] The Government of Queensland and partner RACQ has a similar 'E10 OK' campaign. [36] Both have compatibility checkers and information for motorists about ethanol-blend fuels.[ citation needed ]

Issues

Food security

The main deterrents of producing and consuming biofuel for personal vehicles are food security and land availability. [37] One of the most concerning issues for the Australian population is the increase in food market prices arising from arable land being converted from food crops to biofuel production. [38] For this reason, investment in and production of biofuels in Australia is highly debated.[ citation needed ]

Environmental Impacts

There are widely documented environmental benefits of biofuel use over fossil fuels in terms of reducing greenhouse gas emissions. [1] However, emissions vary depending on the feedstock used during production and must be accounted for. For example, when using an E10 blend, greenhouse gases compared to unleaded petrol are lower by 1.7% from wheat to 5.1% using molasses. There is no data for E85 in a passenger car to compare to those statistics, however; emissions would be much lower than E10 due to less petrol in the blend. [39] Greenhouse gas emissions for biodiesel from waste vegetable oil range from 89.5% lower for B100 to 4.2% lower for B5 compared to diesel. Biodiesel produced from tallow range from 29% less for B100 to 1.5% less for B5 compared to diesel and for canola the values range from 15% less for B100 to 1.5% less for B5 as compared to diesel. [39] It is also important to note that for some feedstocks, greenhouse gas emission balances are not always positive, therefore, investment should be directed for feedstocks that have the highest positive greenhouse gas balances with the lowest environmental, economic and social costs. [39]

There are potential negative impacts on the environment due to land use change. Biofuel crops are grown using monoculture farming methods, which may reduce biodiversity. Direct and indirect land use change can result in changes in carbon stocks on land through a loss of above and below ground biomass and soil organic carbon, which can lead to an increase of greenhouse gases in the atmosphere. [40] Also, when crop-based biofuels contribute to deforestation or fragmentation, the pollution benefits of biofuels can be compromised or eliminated producing a net increase in pollution. [40] There are also many indirect impacts derived from the production of biofuels, for example in Europe a study was conducted on the production of biodiesel from rapeseed oil, showing that using B100 instead of petrol diesel increased acidification by 59% and eutrophication by 214% due to the added nutrients and run-off. [38]

Australia currently has no definite policy, rules or regulations relating to biofuel production with regard to biodiversity conservation or environmental sustainability. [37]

Comparative Summary of Biofuels Characteristics
BiofuelSource of Biomass% YieldPositive effectsNegative effects
BiodieselEdible Oil

Inedible Oil

Used Cooking Oil

80-99Lower emission of CO2, CO, SO2, hydrocarbons and particulate matter

Regional development

Production sustainable

Better ecologic efficiency

Good net energy ratio (NER)

Increase NOX emission

Ozone layer depletion

Eutrophication

Acidification

Competition with the food market when edible oils are used

BioethanolSugar from fruit, cane or beetHighDo not require a complex pretreatmentRaw material us used as a human food source
StarchHighMay be used- some raw material not suitable for human foodPretreatment is required

High production costs

Many raw material is used as a human food source

Agricultural and wood wastesMedium to highRaw material is not used as a human food sourcePretreatment is required

Many pollutants from the pretreatment

High production costs

See also

Related Research Articles

<span class="mw-page-title-main">Biofuel</span> Type of biological fuel produced from biomass from which energy is derived

Biofuel is a fuel that is produced over a short time span from biomass, rather than by the very slow natural processes involved in the formation of fossil fuels, such as oil. Biofuel can be produced from plants or from agricultural, domestic or industrial biowaste. The climate change mitigation potential of biofuel varies considerably, from emission levels comparable to fossil fuels in some scenarios to negative emissions in others. Biofuels are mostly used for transportation, but can also be used for heating and electricity. Biofuels are regarded as a renewable energy source.

<span class="mw-page-title-main">Biodiesel</span> Fuel made from vegetable oils or animal fats

Biodiesel is a form of diesel fuel derived from plants or animals and consisting of long-chain fatty acid esters. It is typically made by chemically reacting lipids such as animal fat (tallow), soybean oil, or some other vegetable oil with an alcohol, producing a methyl, ethyl or propyl ester by the process of transesterification.

<span class="mw-page-title-main">Ethanol fuel</span> One type of biofuel

Ethanol fuel is fuel containing ethyl alcohol, the same type of alcohol as found in alcoholic beverages. It is most often used as a motor fuel, mainly as a biofuel additive for gasoline.

<span class="mw-page-title-main">Biorefinery</span> Refinery that converts biomass to energy and other beneficial byproducts

A biorefinery is a refinery that converts biomass to energy and other beneficial byproducts. The International Energy Agency Bioenergy Task 42 defined biorefining as "the sustainable processing of biomass into a spectrum of bio-based products and bioenergy ". As refineries, biorefineries can provide multiple chemicals by fractioning an initial raw material (biomass) into multiple intermediates that can be further converted into value-added products. Each refining phase is also referred to as a "cascading phase". The use of biomass as feedstock can provide a benefit by reducing the impacts on the environment, as lower pollutants emissions and reduction in the emissions of hazard products. In addition, biorefineries are intended to achieve the following goals:

  1. Supply the current fuels and chemical building blocks
  2. Supply new building blocks for the production of novel materials with disruptive characteristics
  3. Creation of new jobs, including rural areas
  4. Valorization of waste
  5. Achieve the ultimate goal of reducing GHG emissions
<span class="mw-page-title-main">Bioenergy</span> Energy made from recently-living organisms

Bioenergy is energy made from biomass, which consists of recently living organisms, mainly plants. Types of biomass commonly used for bioenergy include wood, food crops such as corn, energy crops and waste from forests, yards, or farms. The IPCC defines bioenergy as a renewable form of energy. Bioenergy can either mitigate or increase greenhouse gas emissions. There is also agreement that local environmental impacts can be problematic.

<span class="mw-page-title-main">Common ethanol fuel mixtures</span>

Several common ethanol fuel mixtures are in use around the world. The use of pure hydrous or anhydrous ethanol in internal combustion engines (ICEs) is only possible if the engines are designed or modified for that purpose, and used only in automobiles, light-duty trucks and motorcycles. Anhydrous ethanol can be blended with gasoline (petrol) for use in gasoline engines, but with high ethanol content only after engine modifications to meter increased fuel volume since pure ethanol contains only 2/3 of the BTUs of an equivalent volume of pure gasoline. High percentage ethanol mixtures are used in some racing engine applications as the very high octane rating of ethanol is compatible with very high compression ratios.

<span class="mw-page-title-main">Alcohol fuel</span>

Various alcohols are used as fuel for internal combustion engines. The first four aliphatic alcohols are of interest as fuels because they can be synthesized chemically or biologically, and they have characteristics which allow them to be used in internal combustion engines. The general chemical formula for alcohol fuel is CnH2n+1OH.

<span class="mw-page-title-main">Biodiesel by region</span>

This article describes the use and availability of biodiesel in various countries around the world.

The United States produces mainly biodiesel and ethanol fuel, which uses corn as the main feedstock. The US is the world's largest producer of ethanol, having produced nearly 16 billion gallons in 2017 alone. The United States, together with Brazil accounted for 85 percent of all ethanol production, with total world production of 27.05 billion gallons. Biodiesel is commercially available in most oilseed-producing states. As of 2005, it was somewhat more expensive than fossil diesel, though it is still commonly produced in relatively small quantities.

Renewable Fuels are fuels produced from renewable resources. Examples include: biofuels, Hydrogen fuel, and fully synthetic fuel produced from ambient carbon dioxide and water. This is in contrast to non-renewable fuels such as natural gas, LPG (propane), petroleum and other fossil fuels and nuclear energy. Renewable fuels can include fuels that are synthesized from renewable energy sources, such as wind and solar. Renewable fuels have gained in popularity due to their sustainability, low contributions to the carbon cycle, and in some cases lower amounts of greenhouse gases. The geo-political ramifications of these fuels are also of interest, particularly to industrialized economies which desire independence from Middle Eastern oil.

<span class="mw-page-title-main">Vegetable oils as alternative energy</span> Fuel made from plants

Vegetable oils are increasingly used as a substitute for fossil fuels. Vegetable oils are the basis of biodiesel, which can be used like conventional diesel. Some vegetable oil blends are used in unmodified vehicles, but straight vegetable oil often needs specially prepared vehicles which have a method of heating the oil to reduce its viscosity and surface tension, sometimes specially made injector nozzles, increased injection pressure and stronger glow-plugs, in addition to fuel pre-heating is used. Another alternative is vegetable oil refining.

<span class="mw-page-title-main">Biofuel in Sweden</span> Use of renewable fuels from living organisms in Sweden

Biofuels are renewable fuels that are produced by living organisms (biomass). Biofuels can be solid, gaseous or liquid, which comes in two forms: ethanol and biodiesel and often replace fossil fuels. Many countries now use biofuels as energy sources, including Sweden. Sweden has one of the highest usages of biofuel in all of Europe, at 32%, primarily due to the widespread commitment to E85, bioheating and bioelectricity.

Second-generation biofuels, also known as advanced biofuels, are fuels that can be manufactured from various types of non-food biomass. Biomass in this context means plant materials and animal waste used especially as a source of fuel.

China has set the goal of attaining one percent of its renewable energy generation through bioenergy in 2020.

There are various social, economic, environmental and technical issues with biofuel production and use, which have been discussed in the popular media and scientific journals. These include: the effect of moderating oil prices, the "food vs fuel" debate, poverty reduction potential, carbon emissions levels, sustainable biofuel production, deforestation and soil erosion, loss of biodiversity, effect on water resources, the possible modifications necessary to run the engine on biofuel, as well as energy balance and efficiency. The International Resource Panel, which provides independent scientific assessments and expert advice on a variety of resource-related themes, assessed the issues relating to biofuel use in its first report Towards sustainable production and use of resources: Assessing Biofuels. In it, it outlined the wider and interrelated factors that need to be considered when deciding on the relative merits of pursuing one biofuel over another. It concluded that not all biofuels perform equally in terms of their effect on climate, energy security and ecosystems, and suggested that environmental and social effects need to be assessed throughout the entire life-cycle.

<span class="mw-page-title-main">Biofuels by region</span> Use of biofuel as energy source across the world

The use of biofuels varies by region. The world leaders in biofuel development and use are Brazil, United States, France, Sweden and Germany.

There are a number of biofuels used in New Zealand.

<span class="mw-page-title-main">Indirect land use change impacts of biofuels</span> Negative spillover effect of production of biofuels

The indirect land use change impacts of biofuels, also known as ILUC or iLUC, relates to the unintended consequence of releasing more carbon emissions due to land-use changes around the world induced by the expansion of croplands for ethanol or biodiesel production in response to the increased global demand for biofuels.

United States policy in regard to biofuels, such as ethanol fuel and biodiesel, began in the early 1990s as the government began looking more intensely at biofuels as a way to reduce dependence on foreign oil and increase the nation's overall sustainability. Since then, biofuel policies have been refined, focused on getting the most efficient fuels commercially available, creating fuels that can compete with petroleum-based fuels, and ensuring that the agricultural industry can support and sustain the use of biofuels.

<span class="mw-page-title-main">Ethanol fuel by country</span>

The world's top ethanol fuel producers in 2011 were the United States with 13.9 billion U.S. liquid gallons (bg) and Brazil with 5.6 bg, accounting together for 87.1% of world production of 22.36 billion US gallons. Strong incentives, coupled with other industry development initiatives, are giving rise to fledgling ethanol industries in countries such as Germany, Spain, France, Sweden, India, China, Thailand, Canada, Colombia, Australia, and some Central American countries.

References

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  19. ↑ V8 Supercars to switch to ethanol Sydney Morning Herald 10 October 2008
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