BBI Biofuels Australia director Bill Elliott told PNN's sister publication EnvironmentalManagementNews.net the move indicated a strong recognition that ethanol and biofuels could play a major role in efforts to tackle climate change.
The Energy Independence and Security Act of 2007 will increase the supply of alternative fuel sources by mandating a Renewable Fuel Standard, meaning US vehicles will be using 36 billion gallons (140 GL) of biofuels every year by 2022. This is almost 25% of the country's annual total transport consumption.
It will also require the US to reduce demand for oil by setting a national fuel economy standard of 35 miles per gallon (15 km/L) by 2020, a 40% increase on current standards.
The Bill also requires that after 2015, the emphasis will switch from corn to the expanded use of cellulosic ethanol, which is produced from feedstock including urban, agricultural and forestry waste known as biomass.
Bill Elliott, director of biofuel services company BBI Biofuels, told Environmental Management News the move indicates growing support for biofuels in the US, with the Bill passed by the House of Representatives in a 314-100 vote this week.
He said the announcement is expected to stimulate research and development in biofuel production and there could be opportunities for Australian producers to tap into the increased demand for renewable fuels. Attention now needs to turn to policies in Australia to foster this growth.
"Australia is riding the crest of an ethanol wave. NSW has mandated the use of ethanol-blended fuel and Queensland has set a policy of blended ethanol by 2010," Elliott said.
"I remain confident that the new Rudd Federal Labor Government will join its state counterparts and turn its attention to an ethanol mandate so things can really get moving in this country."
He said the move from states to mandate the use of ethanol blended fuel was encouraging but a national mandate requiring a minimum 10% ethanol blend in fuel sold is what is needed to foster growth in the biodiesel and ethanol market and cut greenhouse emissions.
