Ethanol provides welcome market

The debate over the use of biofuels in Australia has again come into the headlines in light of the Queensland Government’s decision to mandate the use of three per cent ethanol in petrol sales through the sale of blended fuel products.

The lot feeding and poultry sectors have reacted angrily, saying it will cause an artificial lift in grain prices which will impact on their profitability.

However, Wayne Newton president of the grains section of AgForce, Queensland’s peak farmer representative body said the development of a biofuels sector would not be the ruin of livestock feeders.

“This (the mandate) is something we have been a strong advocate of for a long time and it is not something that is going to be to the detriment of other agricultural industries.

“All the mandate means is that we can get market access for biofuel products in an area controlled by the big petroleum producers.

“It does not set the price for feed grain, all it does is ensure there is demand from the biofuel sector.”

Mr Newton, who farms near Dalby, where the Dalby Bio-Refinery is manufacturing ethanol, said local farmers appreciated the steady demand the refinery provided.

“It is not going to be a home for all our grain, but it will be reliable, whereas a lot of feeder demand waxes and wanes according to the cattle price.”

In terms of feed grain, Mr Newton said feeders would get access to a highly nutritious by-product from ethanol manufacturing.

“Dry distillers’ grain (DDG) is high in fat and in protein and is rated very highly by many of the businesses that use it.”

He said the mandate could not be thought of solely in terms of the ethanol sector.

“Down the track we are hopeful businesses involved in ethanol will be able to invest in research into second generation biofuel, whether that be cellulose-based products or other innovations.”

“In the long run, biofuel is clean and green and renewable and can help create fuel security.”

The Dalby refinery is likely to account for 200,000 tonnes of grain, primarily sorghum, to make ethanol.

Mr Newton said the plant could also handle barley and wheat but said low gluten grain like sorghum was more efficient.

Larissa Rose, of the Queensland Renewal Fuels Association said biofuel could drastically improve Australian agriculture’s productivity, but said a viable first generation biofuel sector based on ethanol and biodiesel was critical to get further investment for more research.

“We could see biofuel made from diverse feedstocks, ranging from native legumes to high biomass shrub and tree species, even algae, but we need to get that initial momentum going, get those foundations there and get a viable first generation biofuel industry going” she said.

She said the example of biofuel industries co-existing with livestock feeding businesses in North America and Europe showed fears about skyrocketing feed grain values were unfounded.

“Things like the Dalby refinery are just another source of demand for producers of feed grain.”