3 Mgy biodiesel plant on hold during permit stage; small new plant may signal resurgence of Aussie biodiesel

In Australia, a 3 Mgy, $5 million biodiesel plant in Goulburn is on hold while the developer, City and Industrial Group, secures permits for 200,000 gallons of storage tank infrastructure. The developer plans a total of four biodiesel plants in Australia.

Last week, BioWorks said it will produce 800,000 gallons of biodiesel from Indian mustard, canola, tallow and palm oil. The Indian mustard crop is being grown at nine farms in Pingelly, Western Australia which have converted from canola cultivation owing to mustard’s better yields in drier areas.

In Australia, the last operating biodiesel plants in operation, those of Australian Renewable Fuels, had closed down in early November due to excessive feedstock costs and low biodiesel prices.
“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 Australian Renewable Fuels’ General manager Max Ger.

That decision followed 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 fall, 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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