In 2012, Australia had a bioethanol production of roughly 440 million liters and biodiesel. In 2011, the U.S. and Australia entered into a joint venture to conduct research and development into the safe use of sustainable aviation fuels. Australia is also a member of APEC (Asia-Pacific Economic Cooperation), which is an international consortium in which member countries assist each other in understanding biofuels and their ability to displace conventional fossil fuels.

Australia has proven reserves of traditional fuel as follows:


Projected Supply

Brown Coal

500 years

Black Coal

100 years

Conventional Gas (Natural Gas)

60 years

Even with these reserves, Australia is a net importer of fuels (much like the U.S.). In truth, Australian reserves represent only a small percentage of global supplies and they being extracted as fast as possible.

Federal Law

1.       Biofuel is exempt from excise tax

2.       Energy Grants Scheme

a.        Reimburses biodiesel through a tax incentive at AU $0.38143

b.       Rates biofuel as “zero rated” in the carbon tax legislation, meaning on taxes are assessed

3.       Imposes countervailing duty and bumping duty on biodiesel imports from U.S. to protect Australian industry

4.       Provides for capital grants

5.       Voluntary industry biofuels target of 350 million by 2010 was met

State Law

1.       New South Wales

a.        Ethanol inclusion in gasoline mandate raised from 4% to 6% in 2011.

b.       Biodiesel inclusion mandate of 1% set

c.        Still allows sale of unadulterated regular gasoline

2.       Queensland

a.        Suspended implementation of 5% volumetric mandate