In Australia, a new report from APAC Biofuel Consultants says Australian biofuel demand contracted by nearly 4% between 2019 and 2020, shrinking to less than 0.5% of the country’s transport liquid and gaseous fuel consumption. ABC acknowledged the role played here by Covid-19 and all its economic repercussions, but positioned mistrust or inertia among consumers as a notable factor as well.
Demand is certainly a key issue to address, although ABC’s report reveals issues on the supply-side as well. In June this year, United Petroleum’s Dalby Bio-Refinery in Queensland closed down despite the government’s best efforts to keep it open. According to ABC, this alone wiped out 17% of Australia’s aggregate biofuel production.
On the plus side, there are efforts underway to build capacity as well – an example being Manildra’s recent move to allow for fuel ethanol production at its high capacity refinery. Even Biodiesel production went up significantly this year, although the segment remains too small to significantly affect the national biofuel numbers.
