Cheap Fuel? That’d Be A Sweet Deal

By Kevin Borg, Chairman, CANEGROWERS Mackay

Fuel prices still linger over the $2 mark, a fact you can’t help but grimly note each time you visit the bowser. So why hasn’t ethanol taken off? We have the feedstock, and the push is on in the world for fuels to be sourced from renewable feedstocks like sugarcane.

E10 is a blend of unleaded petrol and up to 10% ethanol, and is the more popularly used ethanol blend in the Australian market. E85 is suitable only for purpose-built vehicles. Bioethanol is made from molasses and has a multitude of uses across printing, beverages, pharmaceuticals, cosmetics, and, of course, fuel.

While it was put about – largely by the fossil fuel industry – that there could be damage to vehicles resulting from its use. I can say from my personal experience, that I used E10 in my ute and happily drove another 100,000km before selling it on. Worked well.

Ethanol is mandated for use in NSW and Queensland only. The Queensland mandate, enshrined in the Liquid Fuel Supply Act 1984 requires that 4% of the total volume of regular unleaded petrol sales and ethanol-blended fuel sales by liable fuel retailers must be biobased. That has been in place since 2017 and moved from 3% to 4% in 2018.

What we need to see nationwide is State and Federal Government mandating of bio-based fuels. It would build industry, build fuel security, and ease pressure on Australian household finances.

We recently had a tour group from the Brazilian sugar industry visit CANEGROWERS Mackay, and they were astonished to hear that bioethanol fuel in Australia received only light support from government. In Brazil, there is stronger control over domestic fuel prices, with the government subsidising ethanol production, and varying the ratio of sugar and ethanol production based on global markets. Use is high, cost is low – the equivalent of $1AUD per litre.

India is also increasing ethanol production. By 2025, it will have ramped up to 6Mt of sugar diverted to ethanol.

It’s a global shift for sugar-producing nations, and we don’t want to be behind the eight-ball and playing catch-up.

Australia could be strong in this space, too, as we work towards increasing tonnes of sugar produced per hectare and recognise the potential of the established sugarcane footprint in meeting a world hungry for renewable resources to produce its foods, fibres, and fuels.

Wilmar Plane Creek Bioethanol Distillery has been producing since 1927 – that’s almost 100 years. Surely, its moment is truly here. It is the state’s only bioethanol plant, producing 60 Megalitres every year- that’s enough to cheaply power 400,000 cars on E10 for four years.

That amount of bioethanol has the potential to offset 50,000 tonnes of CO2 emissions- the same as taking 15,000 cars off the road. And that’s just from one distillery.

There have been some strong announcements from the Queensland Government in recent times around developing the sustainable aviation fuel sector, but it would be good for all to see expansion of domestic bioethanol fuel production and consumption. The new bioethanol-fuelled buses are a great start, but it would be good to see more vehicles on the road - of all types - powered thus.

Beyond taking control of our own fuel security, there are multiple opportunities in the biofuel space, and people knocking at the door to connect with our capabilities in sustainable sugar production, a stable economy, and outstanding engineering and research capabilities.

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Every year, Wilmar’s Sarina Distillery produces 60 megalitres of ethanol derived from cane, enough to run 400,000 cars on E10 for four years.  Picture: Wilmar

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