FOUR major agricultural bodies have joined forces to urge the Australian Government to introduce an immediate national mandate for ethanol and biodiesel to bolster fuel security.
The National Farmers Federation (NFF), GrainGrowers, Australian Sugar Manufacturers and Canegrowers say it will also support regional jobs and unlock new value-adding opportunities for Australian agriculture.
Together, the four bodies speak for more than 150,000 Australian farming businesses and over 16 sugar manufacturing facilities spanning grain, oilseed, pulse and cane growers as well as sugar manufacturers – representing a nationally significant cross-section of Australia’s farming and regional manufacturing base and contributing billions to regional economies.
The agricultural and manufacturing industry bodies warn the current fuel crisis has exposed the strategic vulnerability created by Australia’s over-reliance on imported fuel, and the failure to fully utilise Australian-made ethanol and biodiesel as practical, domestic fuel security solutions.
They emphasise that domestically produced biofuels offer a practical, immediate pathway to reduce reliance on imported fuel while delivering economic benefits across rural and regional Australia.
NFF CEO Mike Guerin
“What this situation has shown is how vulnerable Australia is to global shocks and how quickly disruptions to critical inputs can put food production and regional businesses at risk. Quite simply, we cannot afford to be in this position again,” Mike Guerin, NFF CEO said.
“Farmers already supply products that power biofuel industries overseas, it’s only logical and smart to support a domestic industry.
“A strong domestic biofuels industry will have the added benefit of helping diversify market opportunities for producers, a key element of risk management.”
A national mandate would create the demand signal needed to increase the use of existing domestic production, unlock new investment in regional manufacturing and provide Australian farmers and processors with a reliable pathway to turn crops and agricultural by-products into higher-value products here at home.
The Australian farming and manufacturing bodies are calling for:
- an immediate national mandate for ethanol and biodiesel;
- a firm, escalating pathway to grow demand for Australian-made ethanol and biodiesel over time; and
- the inclusion of Australian-made ethanol and biodiesel as eligible low carbon fuels under the Federal Government’s Cleaner Fuels Program.
These measures would strengthen Australia’s fuel security, support regional manufacturing, create new markets for Australian agricultural feedstocks and secure the use of existing domestic capability in the national interest.
“GrainGrowers urges the government to bring forward demand-side mechanisms to ensure locally produced ethanol can make its way into Australia’s fuel mix,” Shona Gawel, GrainGrowers, CEO said.
“Australian sorghum and wheat are both well placed to feed into domestic ethanol production.
“Using more ethanol is a huge opportunity, underpinning improved fuel security, boosting our regional economies, and improving our market diversity.”
Australian Sugar Manufacturers CEO Ash Salardini said ethanol is one of the only supply side solutions available to the Government for the fuel crisis today.
“In the long-term, we can expand our ethanol production to provide more than 3 billion litres of biofuels significantly contributing to Australia’s liquid fuel security,” Mr Salardini said.
Canegrowers Chief Executive Dan Galligan urged the government to act now.
“The sugar cane crush is just around the corner, and as they do every year, cane growers across Queensland and New South Wales will harvest over 30 million tonnes of cane ready to supply sustainably produced sugar for both domestic and export markets – but at the same time, we could also do so much more with this valuable, renewable feed-stock,” Mr Galligan said.
“Ethanol made from Australian crops like sugarcane can replace a portion of imported petrol and provide a reliable domestic supply. Just as we see happening right around the world.
“An enforced ethanol mandate would build demand and therefore justify new investment in supply which would underpin new diversified revenue streams for our industry.”
Source: NFF
We should be acting on this now, while the reality of high fuel prices and supply vulnerability is front of mind. I’m in regular contact with more than a dozen groups that already have shovel-ready biofuel projects, including proven technologies and well-developed plans for supply chains. The capability and expertise are here—they’re ready to proceed. What’s missing is clear, consistent support from government and local communities.
If nothing else, this should be viewed through a national security lens. Australia’s current reliance on imported fuels leaves us highly exposed—something as simple as a shipping disruption via a blockade could have serious consequences within weeks.
For a country as rich in energy resources as Australia, it’s difficult to justify persistently high energy costs and ongoing exposure to global supply shocks. Biofuels represent a practical, scalable opportunity to strengthen both energy security and regional economies.
It not surprising that the farm sector backs a mandate for ethanol and biodiesel.
We have observed the price increases of electricity in all sectors of Australia with the subsidies applied to alternative power generation.
Ethanol has never been competitive without government subsidies.
Let’s invest in Australian natural resources and redevelop Australian refineries.