Australia relies on imports for 91% of its fuel, Grain Corp promotes mandatory biofuel blending policy
Australia's largest grain handler GrainCorp has called on the federal government to introduce a national mandatory biofuel blending policy to deal with energy vulnerabilities exposed by geopolitical conflicts. The company's CEO Robert Spurway pointed out that Australia currently relies on imports for about 91% of liquid fuels and more than 85% of aviation fuel. At the same time, about 80% of the country's rapeseed production is exported. GrainCorp said domestic rapeseed can be used to produce biofuels and sustainable aviation fuel without significantly reducing supply to traditional export markets such as the EU. The EU biofuel market currently absorbs 65% to 70% of Australia's rapeseed exports and provides farmers with a price premium. The company believes that developing the domestic biofuel industry can not only increase energy self-sufficiency, but also create more added value for the agricultural industry chain. Earlier this year, fuel supply disruptions triggered by the Iran war dealt a severe blow to Australia's economy, sending inflation soaring and threatening winter cereal plantings. The Australian government announced plans in May to launch a consultation on the introduction of mandatory biofuel blending requirements as a core measure to enhance energy security and reduce transport emissions. GrainCorp is teaming up with Ampol and IFM Investors to advance the Brisbane Sustainable Aviation Fuel Project, which plans to use rapeseed oil to produce aviation fuel. However, IFM Investors has warned that if the government does not force airlines to use the product, the project may face the risk of being shelved. The industry is calling on the government to provide long-term policy support, including supply-side incentives and a national certification framework, to drive commercial-scale production.