The proposed ethanol mandate of 2% in Queensland is “too low”, according to BAA Chairman Garry Mulvay.
Mr Mulvay, also the Executive General Manager of Wilmar BioEthanol’s Sarina Distillery, told ABC Rural that he had a “mixed reaction” to the state government’s discussion paper on how to support the growth of the Queensland biofuels industry.
“I am glad they are moving forward with the mandate and I think that is a positive thing for the industry, but at 2 percent, I think the level is too low to start with,” Mr Mulvay said.
He added that Queensland had seen higher levels of ethanol blended into the state’s fuel without the help of a mandate.
“Queensland got to a level of about 3 per cent without a mandate in 2009, so the capacity is there to go to a higher blend rate of 3 or 4 per cent a lot faster.”
He also suggested that the mandate start in January next year, rather than the currently slated date of July 1, 2016.
Queensland Energy Minister Mark Bailey has stated that the proposed mandate level of 2% could rise in line with production capacity in the future.
The Sarina Bioethanol facility currently produces 60 million litres of ethanol a year to help fuel Australia’s ethanol consumption, but has a capacity of 90 million litres.
More information on Wilmar BioEthanol can be found here.
*adapted from ABC Rural. Original can be found here.