“Biofuel contracts and a MOU for over 200 million litres of biodiesel and ethanol, announced today by BP, are a significant step forward in the development of clean green fuels in Australia,” Leader of the Nationals in the Senate, Senator Ron Boswell said today.
“The short term contract for 23 million litres for ethanol into the Queensland market will help fulfil BP’s responsibility to the Prime Minister in meeting its voluntary target by the end of the year,” he said.
“It is now up to Caltex, Shell and Mobil to come to the party and commit to short term contracts in order for the Dec 2006, 89ML - 124 ML biofuel target to be met.
“Investors in these new industries are watching closely for reassurance. It is essential that each volumetric target is met and a public commitment to forward contracts is achieved so that the confidence in the developing market is maintained.
“If the remaining oil majors make similar announcements in the near future, then the Government’s target of at least 350 mega litres of biofuel by 2010 should be met much earlier.
“This outcome would be a significant achievement by the Government and reflect the maturity of the transport market and consumers in their acceptance of fuel that significantly reduces greenhouse gas emissions.
“Australian motorists are ready to embrace cleaner, greener biofuels and today’s announcement by BP indicates that company’s willingness to increase distribution and access to the product for Queensland consumers.
“It is disappointing that BP have not chosen to take the lead by boosting their distribution of e10 into the bigger markets of Sydney and Melbourne in the near future.”
“The bulk of the ethanol blended fuel in the southern capital markets is distributed through independents not the major oil companies.”
Senator Boswell said he was enthusiastic about BP’s decision to enter into biofuel production as if reinforced his belief that biofuels are now part of the mainstream transport fuel mix.
He said the MOU with Primary Energy in Western Australia will lead to the fast tracking of the first major biofuel facility in that state and take advantage of the large quantities of feedstock produced by WA rural producers.