Biofuels gain momentum as petrol forecast remains grim

Biofuels gain momentum as petrol forecast remains grim
Sydney Morning Herald - Sydney,New South Wales,Australia
... Meanwhile, a road tanker loaded with Australia's first diesel fuel enhanced with 2 per cent biodiesel, rolled out of Caltex's Newcastle terminal at Wickham ...

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EIGHT out of 10 NSW motorists support Federal Government incentives to promote alternative fuels, but nine out of 10 admit they do not know enough about them to make an informed decision, a summit in Sydney will hear today.

NRMA motoring and services will host the invitation-only event, which will be attended by the former federal transport minister Warren Truss, the Opposition Leader, Kim Beazley, and several international speakers.

Despite petrol prices dropping to $1.10 a litre in parts of the city yesterday, most motorists believe prices will remain high next year.

A survey of 330 NRMA members in NSW and ACT found 80 per cent would consider switching to cheaper biofuels.

Meanwhile, a road tanker loaded with Australia's first diesel fuel enhanced with 2 per cent biodiesel, rolled out of Caltex's Newcastle terminal at Wickham yesterday, as part of the company's expansion into supply of biofuels.

More than 17,000 tankers a year will deliver the biodiesel to 185 Caltex outlets throughout the Hunter, Central Coast and North Coast.

Rutherford's Biodiesel Industries Australia is the source for the Caltex terminal's biodiesel product.

Biodiesel Industries Australia's production manager, Julian Blake, said the company produced biodiesel from a blend of animal and vegetable oils and was capable of producing up to 15 million litres a year.

But the move was criticised as not going far enough.

"One wonders why they're making such a big deal about it," said independent biodiesel wholesaler, Morris Lyda, pointing out that stations are not even required to disclose they are using biodiesel until the content exceeds 5 per cent.

"Every auto manufacturer in the world has already come out and said [5 per cent biodiesel] is acceptable," he said, adding it would take a blend of 20 per cent biodiesel to have a real environmental benefit.

But the federal Transport Minister and Nationals Leader, Mark Vaile, yesterday threw his support behind the new product.

"The launch of 'new generation diesel' is another step forward for Caltex and the biofuels industry," he said. "Greater biofuel usage and consumer awareness go hand in hand and I welcome Caltex's moves to keep their customers informed about their product with brochures and a biofuels hotline."

But industry figures continue to lobby for government funds to support consumer awareness campaigns on biofuels.

Mr Vaile will not attend today's summit, which was arranged before his portfolio switch last weekend.

Australia's two peak biodiesel industry associations, Renewable Fuels Australia and Biodiesel Association of Australia, are expected to announce that they will merge to form one body to promote the awareness of biofuels.

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