Queensland biofuel use likely to fall despite new E3 and B0.5 policies

In Australia, biofuel use is expected to fall in Queensland despite a recent move to mandate a 3% ethanol blend that will require about 30% of the state’s gasoline to be blended with E10 due to a crash in biodiesel imports. Biodiesel imports have slowed to a trickle as a result of an excise tax on imported bio-based diesel. Interstate biodiesel production is more than adequate to supply the 0.5% blending mandate introduced at the same time as the ethanol blending requirement. Taking both biodiesel and ethanol into account, APAC Biofuel Consultants expect the state’s overall biofuel use in 2016 to revert to pre-2010 levels of 360,000 kiloliters.