Australia’s CSR to increase ethanol capacity as demand increases

In Australia, CSR said that it will invest $17.8 million to increase its ethanol capacity to 15.8 Mgy at its plant in Sarina, in northern Queensland, and will convert all of its production to fuel-grade ethanol. The company previously used more than 35 percent of its capacity to produce industrial and beverage grade ethanol.

Australia background

Researchers at Murdoch University will set up a series of saline algae test ponds and photobioreactors in a bid to reduce the cost of algae production from $11.46 per kilo to a target of $.95 per kilo. The university has received $1.8 million in federal government support for the project, which will be conducted in conjunction with research efforts in India and China.

In July, researchers at the University of Tasmania constructed a prototype, plug-in hybrid ethanol-electric vehicle. The prototype used a Toyota Corolla body, and follow up from a successful development of a plug-in hybrid motor scooter last year. The prototype placed electric engines in each of the car’s four wheels, and would generate power during braking to recharge the car’s batteries. The ethanol engine was used for assistance on steep hills. The car generated as little 90 grams of CO2 per kilometer if using renewable electric energy, a reduction of 70 percent compared to conventional gasoline-powered vehicles.

Last month, the highly-anticipated Garnault climate change report was released, outlining urgent steps required to meet climate change targets. The report prompted the Australian jatropha developer Jatoil to call on the Australian government to permit large-scale cultivation of jatropha in Australia. The plant has been considered an invasive species and its import and cultivation have not been encouraged. Jatoil has partnered with GreenEnergy Biofuels to develop jatropha farms in Vietnam, and has marketing agreements in place with Norway’s Perennial Bioenergy and with biodiesel refiner Imperium Renewables.

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.

• 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.