Australia could reduce its greenhouse gas (GHG) emissions and improve its energy security by using its canola and sorghum for low-carbon liquid fuels, lobby group Grain Growers Australia said in its latest report.
Australia relies heavily on fuel imports, which account for 91pc of the country's fuel supply. Most fuel is transported through the southeast Asian straits and any emergency or disruptive event could severely impact Australia's access to the international liquid fuel market, the report said. Australia's membership to the International Energy Agency (IEA) requires it to maintain emergency stocks equivalent to 90 days of net imports to contribute to collective action if needed. But Australia has not been compliant with these regulations since 2012.
Australia is one of the world's largest grain exporters, exporting over 70pc of its canola seed to Europe so far this December-November marketing year. EU government policies such as the Renewable Energy Directive II have boosted demand for feedstocks, but there is no national mandate in Australia for biofuel blending — only New South Wales and Queensland have state-level mandates requiring the sale of ethanol-blended gasoline, but these are not strictly enforced. Australia's role as a consistent supplier of canola to the EU biodiesel market indicates its potential to meet domestic needs for low-carbon liquid fuels and a national mandate would encourage industry development, the report said.
The Australian government must work with grain producers to develop a national feedstock strategy and provide capital expenditure grants to encourage industry development, Grain Growers said, given that biofuel production facilities are estimated to cost A$25–30bn ($16-19bn), according to a Clean Energy Finance Corporation report.
Australia's commitment to reduce emissions by 43pc by 2030 and achieve net zero by 2050 could be achieved through low carbon liquid fuels, Grain Growers said. Australian canola ranks among the lowest for GHG emissions, producing 50pc less emissions than fossil fuels, according to the Commonwealth Scientific and Industrial Research Organisation (CSIRO).
