In short:
Australia has about three days' worth of readily available fuel supply made from ethanol, sugarcane and other biofuels, but the vast majority is sold overseas.
asserted
majority → have → ethanol
The newly former Biofuel Producers Alliance says a mandate on fuel importers and refiners could shore up Australia's fuel stocks, buffer against price shocks and support Australian farmers.
uncertain
mandate → say → farmers
The federal government is consulting on whether to create a "volumetric mandate" that would require fuel companies to buy Australian-made fuels.
asserted
that → consult → fuels
Australia is exporting tens of millions of litres of biofuels that could instead add at least three days of supply to the nation's petrol and diesel stocks.
uncertain
that → export → stocks
Petrol prices have risen again to an average $2.42 per litre as the war in Iran drags on longer than anticipated.
asserted
war → rise → Iran
There are fresh concerns about Australia's vulnerable fuel stocks heading into the summer holidays as the United States mulls a ban on diesel exports.
asserted
States → be → exports
Australia currently holds 41 days of petrol supply and 33 days of diesel, more than when the Iran war began because of emergency measures imposed earlier in the year, but still well below the international requirement to hold 90 days of supply.
asserted
war → hold → supply
With the country's fuel security vulnerabilities exposed, the government is looking at whether to force petroleum companies to buy Australian-made fuels that are being sold overseas to help buffer the country from price and supply shocks.
asserted
that → expose → shocks
Australian fuel being sold overseas instead
asserted
fuel → sell → ?
A new alliance of Australian biofuel producers has formed to encourage the federal government to require the major petroleum importers and refiners to buy Australian biofuels, made from the waste by-products of wheat, sugarcane, cooking oils and other farming "feedstocks".
asserted
alliance → form → wheat
The Biofuel Producers Alliance, made up of Manildra Group, Wilmar Sugar, and three biodiesel companies, already has about 470 megalitres of ethanol and biodiesel capacity, which amounts to about three days' extra supply.
But in the first six months of the year, when Australia was scrounging for additional fuel, more than 60 megalitres produced in Australia was sent overseas instead, because there is little demand from petroleum importers and refiners to buy Australian biofuels.
asserted
megalitres → make → biofuels
"When we were sitting in March and April, and all of this was unfolding, E10 was one of the first fuels to drop out in service stations, and at the same time we shipped out 24 million litres of ethanol to South-East Asia, Korea and other places for them to use with their cars," chief executive of the Biofuel Producers Alliance Matt Hobbs said.
asserted
Hobbs → sit → Alliance
"At a time of a fuel crisis we ignored fuel that we made here and instead sent it to other countries."
asserted
we → ignore → countries
Mr Hobbs said if the federal government introduced a "national biofuel blending requirement" from 2027 it could shore up stocks and ease the pain at the bowser by several cents a litre during price shocks.
uncertain
it → say → shocks
It's good for consumers because you have got good supply, it doesn't go on a boat.
asserted
it → get → boat
Fuel made in Australia should be used in Australia, and not shipped overseas."
The federal government is consulting on whether to make fuel companies purchase "low carbon liquid fuels", including biofuels, which it acknowledges may be the only pathway to reduce CO2 emissions for some current fuel uses, including in aviation.
The government's consultation paper proposes to introduce a "volumetric mandate" that would begin in 2029, requiring certain amounts of alternative fuels to be supplied or acquired in order to create demand and support domestic fuel production.
uncertain
that → make → production
Once the sector has been established, after 2035 the requirement would shift to require more efficient fuels based on "carbon intensity", rather than prescribing specific fuel types and amounts.
asserted
requirement → establish → types
The Biofuel Producers Alliance said there was capacity for a mandate to begin now, and quickly soften fuel pressures, rather than wait until 2029.
asserted
mandate → say → 2029
The Australian Chamber of Commerce and Industry (ACCI) said Australia's current project pipeline could potentially support 2 billion litres of domestic low-carbon fuel production, and as much as a fifth of the country's fuel imports could be replaced with domestic production by 2040 with further investment in fuel refining.
uncertain
fifth → say → refining
However ACCI said the government should not impose demand-side measures to develop the sector, but rather temporary assistance.
asserted
government → say → sector
"Broader demand-side market obligations should only proceed where it is proven that sufficient fuel is available at a competitive price and … that the market, infrastructure and compliance systems are ready," the business group said in its submission to government.
asserted
group → proceed → government
ACCI also said that as the vehicle fleet electrified, any policy should be increasingly focused on hard-to-abate sectors including aviation, heavy freight, mining and defence.
asserted
policy → say → aviation
The Australian Institute of Petroleum, whose members include Ampol, BP, Mobil Oil and Viva Energy, said in August it supported policies to "stimulate demand for low-emission fuels".
asserted
it → include → fuels
"AIP members have long been advocating that low-carbon liquid fuels, such as renewable diesel and sustainable aviation fuel, can substantially cut emissions from 'hard-to-abate' sectors such as heavy transport, agriculture and mining," its chief executive Malcolm Roberts said.
asserted
executive → advocate → transport
"Fuel suppliers have robust international supply chains which have ensured continued supply to Australia despite the Middle East crisis.
asserted
which → have → crisis
Local refining and in-country fuel reserves also strengthen our fuel security."
asserted
refining → strengthen → security
Iran war fuel crisis 'proved' demand failure
More than 60 countries have mandates requiring petroleum companies to purchase biofuels, including the United States, United Kingdom, Canada, European Union nations and Singapore.
asserted
countries → prove → States
The alliance says Australia is exporting nearly 80 per cent of its cooking oil and canola, mainly to Europe and Asia, where it is refined into renewable diesel and aviation fuel, and then sold back into markets including to Australia.
asserted
it → say → Australia
Just 0.1 per cent of Australia's diesel last year came from biodiesel, one-fiftieth of the rate consumed in the US and EU, where there are established local biodiesel industries, produced from the by-products of soybean oil, animal fats and other goods.
asserted
cent → come → oil
But Mr Hobbs said when the fuel crisis began in February and fuel prices skyrocketed, ethanol-blended petrol recorded its weakest month since 2010 outside of the pandemic.
asserted
petrol → say → pandemic
He said the four major fuel companies in Australia did not have commercial reasons to buy Australian biofuels, since they are vertically integrated and it was financially advantageous for them to buy their own supplies.
asserted
them → say → supplies
"There's great opportunity with current facilities to expand supply, and for farmers and others to get good prices for their commodities … at a good price for consumers," Mr Hobbs said.
asserted
Hobbs → be → consumers
In August, the Manufacturing Workers Union, Australian Workers Union, National Farmers' Federation, grain and sugar farmers jointly wrote to Prime Minister Anthony Albanese advocating for a national ethanol and biodiesel mandate.
asserted
Union → write → mandate
The Aporia