Last Australian biodiesel plants close as rising feedstock prices obliterate short-term biofuels profitability

In Australia, the last biodiesel plants in operation are closing down due to excessive feedstock costs and low biodiesel prices. The Australian Renewable Fuels tallow-based biodiesel plants in Bunbury and Adelaide were the last biodiesel facilities in the country, according to the company’s owners.

“We need government support in the form of consideration of possible imposition of mandates for the use of biodiesel, we need governments to step up and recognise the benefits obtained for people and the environment and instead of using fossil fuels alone to recognise that biodiesel needs a market of its own,” said the plant’s acting General manager Max Ger.

The decision follows closures and project halts on Australian ethanol plants by Agri Energy. That company’s CEO said that “The decision to put on hold any further development in the Australian biofuels industry is a result of current global biofuels market outlook, reflecting ongoing high feedstock prices and continued uncertainty from the investment community, government and community support for alternative transport fuels in Australia.”

Last month, a $30 million biodiesel plant in Port Botany was opposed by the Green Party for proposing the use of Indonesian and Malaysian palm oil. However, the Queensland government has approved a 40 Mgy biodiesel plant that will be constructed at Mackay; the plant will be operated by the Mackay Port Authority and begin production in 2008.

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