Green group backs biofuels announcement 'in principle'

Green group backs biofuels announcement 'in principle'
ABC Online - Australia
Oil company Caltex yesterday announced the introduction of 2 per cent biodiesel, which is derived from substances like canola oil and will aim to meet the ...

The Total Environment Centre says the production of Australia's first diesel enhanced with biofuels in Newcastle is a good start for the industry.

Oil company Caltex yesterday announced the introduction of 2 per cent biodiesel, which is derived from substances like canola oil and will aim to meet the Federal Government's 2010 biofuels targets.

The product is being developed at the company's Newcastle terminal and is the same price as standard diesel.

Total Environment Centre director Jeff Angel says biodiesel is a sustainable fuel alternative, but it must be produced responsibly.

"Two per cent's a good start, but we have to do a full life-cycle analysis to test what greater percentages are involved," he said.

"For example, does it cause more land clearing, will we have greater use of pesticides on crops etcetera? So we need a good environmental analysis, but biodiesel in principle is a good idea."