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Could sugar be used as biofuels across Australia?

The Australian Sugar Milling Council’s (ASMC) has highlighted the industry’s biofuel potential in its response to the Federal Government’s consultation on its Electricity and Energy Sector Decarbonisation Plan.

The Australian Sugar Milling Council (ASMC) has highlighted the industry’s biofuel potential in its response to the Federal Government’s consultation on its Electricity and Energy Sector Decarbonisation Plan.

Sugar by-products, such as bagasse, can be converted into biofuels or used to generate renewable electricity.

Billions of dollars of investment will be required to meet these potential opportunities, requiring both short-term and long-term government interventions.

ASMC chief executive officer Ash Salardini said there is a potential to provide up to 8 per cent of Australia’s domestic aviation fuel needs through sugar feedstocks.

“Australia and particularly Queensland could become an energy powerhouse on the back of our industry, creating thousands of new jobs and contribute an additional $4 billion to the economy,” Salardini said.

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“In the short-term, biofuels like SAF (sustainable aviation fuel) are simply not competitive with traditional fossil fuels and are some two to three times more expensive. To provide the commercial incentives for investment in this area, the Government will need to introduce measures such as domestically produced biofuels mandates and tradeable market certificates for low carbon biofuels.

“Such measures will provide a pathway to the economies of scale and demand that will drive costs down and develop a viable market for biofuels.”

“Energy production through the sugar supply chain is not a pie in the sky idea – we are producing biofuels and renewable energy today. Governments must provide the investment certainty so we can make the investments to grow and meet Australia’s net-zero ambitions while providing affordable energy to all.”

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