The Barnawartha biodiesel plant in north east Victoria has the potential to drive Euro 6 engine sales, slash carbon emissions and improve fuel security.
Opened this week with the capacity to produce up to 50 million litres of renewable biodiesel made from animal and vegetable waste oil, Just Biodiesel has revived the de-commissioned ex-Australian Renewable Fuels plant which financially collapsed in 2016.
The plant can make blends from as little as 5% up to 100% biodiesel, with as much as an 83% reduction in carbon emissions from well-to-wheel.
Scania Australia says its Euro 5 trucks with factory-specified conversions can safely run on B100 (100% biodiesel), and its range of five Euro 6 trucks ranging from 320hpto 580hp are also approved for B100.
Biodiesel is produced by the transformation of animal fats and vegetable oils be reacting them with alcohol, and further refining it to the point it meets the Australian Biodiesel Fuel Standard.
Pure B100 biodiesel contains roughly 90% of the energy density of regular mineral diesel and B20, offers about 98% of regular mineral diesel’s energy density.
The South Australian government says “the majority of the Adelaide Metro bus service has been fuelled by either B5 or B20 for some years, with positive results.”
Bioenergy Australia chairman Dr John Hewson says the ability to produce the renuewable fuel takes the edge off Australia’s lack of fuel security.
“We have 21 days of fuel and we have the distinction of having the dirtiest petrol in the OECD – the government has no fuel security strategy,” he says.
“This is a sad situation, we are very exposed, so it is not surprising that others have decided we have to get on and create fuel from alternative sources,” he explains.
Hewson says Europe imports 80% of Australia’s soy bean product to turn into biofuel and describes the situation as “very exposed”.
“The risk of not having a secure fuel policy is a major disadvantage to this country,” he adds.
However a continuing threat to the biofuel sector in Australia after the plant’s closure three years ago, and the subsequent 30 staff rendered jobless, remains excessive taxation on biofuels despite previous government promises against it.
In 2011, under the Gillard Labor government, federal legislation protecting renewable fuels from excise was put in place until 2021. But in the Tony Abbott 2014 federal budget, taxation was put on biofuels, and is set to reach 13% in the next financial year.
Just Diesel general manager Greg Boyall tells the ABC it’s “one of the major hurdles of the development of a successful biodiesel industry”.
Boyall says the company will look at both the domestic market and exporting for potential opportunities to work around the taxation.
