Australia to raise biofuels consumption in 2022

December 26, 2021 |

In Australia, Argus Media reports that Australia’s federal government will implement new fuel standards for gasoline from 1 January 2022, which may significantly raise the ethanol blend rate in the country and boost demand for imports. Under the new fuel quality standard, Australia aims to reduce maximum aromatics content in the gasoline pool to 35pc from 42pc on a volumetric basis. Ethanol will be the primary substitute for aromatics and Australia will need to approximately triple its bioethanol use on the year to 550mn l in 2022.

“Additional ethanol demand in 2022 will be met mostly from imports, according to the USDA, as there are no indications that domestic capacity will increase in the short term,” according to Argus Media.

“Ethanol and biodiesel blending rates are both set to decline in 2021 from 2020 levels according to USDA data, due to no federal government subsidy, tax credit or mandate supporting the production or use of biofuels. Only two states have biofuel programmes with ethanol and biodiesel mandates, but these mandates are far from being reached.”

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Category: Policy

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