An Australia biofuels institute could help to create
greener transport fuel.
Image: iStockphoto

In a major report on Biofuels released in Melbourne on 17 November, the Australian Academy of Technological Sciences and Engineering (ATSE) recommended that a National Biofuels Institute be established.

President of ATSE and former Chief Scientist for Australia, Dr Robin Batterham said that with strong governance, guaranteed funding and appropriately focused international linkages, the “impressive cadre” of Australian researchers in the bio-industries could come together far more effectively than through the fragmenting, competitive, grant-driven, step-by-step processes that characterise much of Australia’s RD&D. 

The Hon Peter Batchelor MP, Minister for Energy and Resources and Minister for Community Development launched the ATSE report, Biofuels for Transport: a Roadmap for Development in Australia, at the opening of the ATSE 2008 National Symposium “Alternative Transport Fuels for Australia” being held in Melbourne on 17-18 November.

‘We strongly recommend that Australia set up a National Biofuels Institute to be established along the innovative lines of the recently announced Global Carbon Capture and Storage Institute, the National Low Emissions Coal Initiative and the soon-to-be-created Australian Solar Institute,” said Dr Batterham.

“These models, building on the clustering and industry-creating experiences of a number of Cooperative Research Centres, are expected to be able to go further than CRCs realistically can.”

The report notes that recent world events have brought the issue of fuel supply into extremely sharp focus. Australia has limited transport fuels alternatives, but can advance strongly in Generation 2 biofuels.

“Australia has modest prospects in the domain of Generation 1 biofuels – ethanol and biodiesel – where a fledgling industry is established, based mainly on food by-products, within an uncertain policy environment.”

Dr Batterham reported that while there is some room for growth, competition for scarce resources – including water and agricultural land well-suited for food production – make it unlikely that a substantial Generation 1 industry could further develop in Australia without market- distorting mandates or subsidies, despite the compelling need for transport fuels security.”

“It’s a different story in the Generation 2 biofuels domain, where non-food resources dominate, and Australia may be well-situated to establish a thriving future industry, based on the prolific and lower-value resources which it has in abundance.”

“The significant potential for the economic conversion of woody plants (lignocellulosics) to ethanol and specialised algae strains to biodiesel warrant enhanced commitment to focused Australian RD&D in this sector – which should be aligned with the significantly greater RD&D efforts of other nations,” he said.

The ATSE report noted that, despite its fragmented and underfunded competitive RD&D effort in the biofuels area, Australia has many worthwhile initiatives.

“Bioenergy Australia, as the national industry body, provides an effective leadership role in drawing the industry domain together. The National Collaborative Research Infrastructure Strategy (NCRIS) Biofuels Project is a worthy program.”

“A Biofuels Institute could improve mutual cooperation between Australian researchers and to build and sustain collaborative international arrangements.”

“We urge the continuation of Australia’s engagement in the International Energy Agency’s Bioenergy Task 39, Commercialising First and Second Generation Biofuels from Biomass, current until 2010, and commend our membership of the Global Bio-Energy Partnership (GBEP) to further enhance meaningful international engagement.”

Dr Batterham noted that the ATSE Report takes a strong view that the use of biofuels to enhance Australia’s liquid transport fuel security must not be at the expense of food production.

“Present Generation 2 biofuel technologies are not cost-competitive. An expanded RD&D effort is required and biofuels research is fragmented and poorly coordinated and needs to be better-funded,” he said.

“Australia must enhance the knowledge base of its more promising biofuels resources and build on its significant existing strengths in biofuels research.”

The report notes that Australia has limited biofuels production capacity which needs to be supported and that biofuels industry development must be directed not only to the production of economic transport biofuels but also to creation of profitable co-products.

“Australia needs to develop clear-cut long term policies for biofuels, including an effective balance between ‘technology push’ and ‘market pull’, evaluation of biofuels production and distribution infrastructure and related logistics, a major injection of RD&D funding and better research clustering and cooperation.”

“A large-scale Australian biofuels industry will have to demonstrate robust credentials in greenhouse gas emissions, land and water impacts, financial viability and social acceptability,” Dr Batterham said.