Australian state nixes biofuels mandate consideration until 2013, cites concerns on feestock availability, effect on food prices

In Australia, the state of Victoria’s Economic Development and Infrastructure Committee, found the costs of developing biofuels could outweigh the benefits, and recommended that the state defer a decision to impose an ethanol blending mandate until 2013. Feedstock availability, and the potential to increase pressure on food prices, were cited as chief concerns of the panel.

In Australia, a researcher at CSIRO, the national science agency, has warned Australian state governments against imposing ethanol mandates. The warning followed the imposition of an E2 mandate by New South Wales, scheduled to increase to E10 in 2011. David Lamb said that mandates in the US have encouraged heavy investment in ethanol, and he attributed the food shortage in Mexico and the doubling of the price of tortillas as a consequence.

CSIRO as an agency has also reported on biodiesel emissions. Their recent report on biodiesel confirmed that the use of B2 biodiesel made from tallow reduces greenhouse gas emissions by 1.5 percent, while the use of B20 results in a 15 percent reduction in greenhouse gases.
The statement on the food shortage has not been supported by other researchers. It has been widely reported that ethanol is made from yellow, or feed, corn, while Mexican tortillas are made primarily from white corn. US corn exports supply only 14% of white corn consumed in Mexico. The rest is produced domestically by Mexico, which does not sell corn to ethanol producers.

Other reports have pointed out that the culprit in Mexico is rising corn consumption. Since 1993, the Mexican population has risen by 19%, and domestic corn production has grown 18%. However, Mexican corn consumption has risen 57% in the same period.

Free Subscription to the Daily Biofuels Digest e-newsletter

Related Stories

Missouri to consider repeal of ethanol mandate; food prices driving concerns

In Missouri, the state house is holding hearings on a repeal of the state ethanol mandate that took effect in January. A repeal bill was introduced by Rep. Mike Dethrow, R-Alton, who voted for the man...

Indian energy ministry admits E10 mandate unlikely to take effect in October, as biofuels availability, capacity issues remain unsolved

In India, the national government is now acknowledging for the first time that it is unlikely to implement its 10 percent ethanol mandate in October. “There are lot of issues including availability....

Today in Biofuels: USDA issues upward revision in biodiesel net energy return; ethanol plant at Chernobyl to remove radioactive isotopes from soil; Nature Conservancy study says land conversion causes net carbon gain

Top Story: The US Department of Agriculture, in conjunction with researchers at the University of Idaho, released a new calculation of the energy balance of biodiesel. The new ratio, a net return of ...

Macquarie Oil to construct 1.3 Mgy poppy seed biodiesel plant in Tasmania

In Australia, Macquarie Oil Company has commenced construction of a 1.3 Mgy biodiesel plant in Cressy, Tasmania. The plant will be the first in Tasmania, and will use poppy seeds, mustard, and linseed...

Oregon B2 biodiesel mandate expected for September, say officials

In Oregon, the state Department of Agriculture (ODA) and Oregon Department of Energy announced that the state's B2 biodiesel blending mandate could take effect as soon as September 2009. The mandate i...

Minnesota begins to wind down ethanol subsidies; industry “jump-start” incentive program ending in 2010

In Minnesota, the state government is preparing plans for ending subsidies to ethanol plants in the state. The last payments, under a state plan designed to incentivize ethanol production in the state...