Macquarie Oil completes 1.3 Mgy poppyseed biodiesel plant in Tasmania

In Australia, a 1.3 Mgy poppyseed biodiesel plant in Cressy, Tasmania has been completed and is expected to commence production in August. Macquarie Oil, the operator of the plant, said that they expect to market the biodiesel to local fleets and Hydro Tasmania for electricity generation on Flinders Island.

The plant will be the first in Tasmania, and will use poppy seeds, mustard, and linseed as feedstock. The use of exotic feedstocks, instead of commodities such as palm or canola oil which have become prohibitively expensive, are key to making the plant commercially viable.

Australia background

• BP has cancelled an agreement with Primary Energy to develop a $270 million, 50 Mgy ethanol plant at Kwinana.

• The federal government refused to rule out scrapping a $40 million program providing research grants for ethanol, pending review of the impact of ethanol on world food prices.

• Australian Renewable Fuels has signed an agreement to sell 10 million gallons of biodiesel from its Picton plant over a 5-year period to an undisclosed Western Australian resource company.

• A survey by insurance group AMMI found that more than half of Australian drivers will not use ethanol in their cars, due to concerns of engine damage.

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