Queensland National Senator Boswell will urge the Howard Government to legislate to force the take-up of renewable fuels such as ethanol, according to the article.
"The implementation of this kind of renewable fuels strategy under a mandatory renewable energy target would mean there will continue to be growth and development in the market, and that ethanol and biodiesel will be playing an important role in reducing Australia's dependence on imported oil," Senator Boswell will say.
The ethanol sector is aiming to secure more government funding to support the industry, which is dominated by Dick Honan's Manildra Group and CSR Distilleries, according to newspaper.
The industry intends to lobby for a mandatory renewables scheme similar to the one that operates in the electricity sector, which forces wholesalers to source a minimum proportion of their product from renewable energy.
The ethanol industry aims to capitalise on concern within government ranks about the effect of the current spike in oil price, as well as concerns about the oil industry’s capacity to meet demand for transport fuels.
The ethanol industry has strong support in the Nationals, particularly in Queensland, who see the sector as vital to preserving the viability of the struggling sugar industry.
But as reported previously by EnergyReview.Net, the ethanol industry has been tarnished by political controversy over donations made by Manildra to the Coalition, as well as by community concern about the long-term effects of ethanol on vehicle engines.
While E10 fuel – petrol with 10% ethanol – has been widely studied and found to have no deleterious effects on conventional engines, some service stations in southern Sydney and in Wollongong sold blends of up to 20% ethanol without disclosing this fact.
The Howard Cabinet repeatedly declined to impose a limit on ethanol levels, despite evidence from motoring organisations that ethanol levels of more than 10% could damage car engines. It was left to state governments to act to force service station owners to disclose ethanol content in their petrol.
Meanwhile the Canadian Province of Ontario has adopted a renewable fuel standard that will require that all gasoline sold in the province contain an average of 5% ethanol by Jan. 1, 2007.
Under the legislation, fuel wholesalers´ annual petrol sales must include an average rate of at least 5% ethanol. This can be achieved through actual ethanol blending or by trading renewable fuel credits.
The provincial government claims this target will reduce greenhouse gas emissions by about 800,000 tons, the equivalent of taking 200,000 vehicles off the road.
