Biofuel

Biofuels are made from renewable materials such as sugars, grains and crop waste, rather than fossil deposits such as petroleum and coal. The most common biofuel in Australia is ethanol, which is blended into unleaded petrol to create E10. Increased utilisation of biofuels can assist with Australia's efforts to reduce greenhouse gas emissions.

However, biofuels are presently produced from grain and sugar cane. This first generation technology interferes with human food production, is not cost-competitive compared with conventional fuel alternatives and continues to require substantial and ongoing financial support to maintain their production and use. Internationally governments are moving away from policy assistance towards first generation biofuel production because of concerns for food security and the environmental sustainability of this technology.

Second generation biofuels will be made of celluloses from crop waste, grasses and trees and thus offer a truly sustainable form of renewable energy. More research is necessary to commercialise this technology and efforts are underway internationally.

The pork industry supports the need for Australia to reduce green house gas emissions and recognises that biofuels are an essential component of a future energy mix. But this should not be at the cost of food. Therefore, instead of supporting first generation biofuels, government assistance should be targeted on accelerated research into the development of second-generation biofuels that do not require commodity feedstock and interfere with human food production.

APL Fact Sheet- Biofuel Policies in Australia