Ruqayyah Snyder
Australia has three major fuel ethanol production facilities, which produce ethanol from waste wheat starch, grain sorghum, and molasses. The largest ethanol producer in Australia is the Manildra Group in Bomaderry, and Wilmar, Australia's largest manufacturer of sugar-based ethanol, produces about 60 million litres of bioethanol a year at its Sarina Distillery. Ethanol is a colourless alcohol made by the fermentation of biomass, using glucose derived from sugar, starch, or cellulose. It is a renewable energy source and the most widely used alternative fuel in the world.
| Characteristics | Values |
|---|---|
| Ethanol production methods | Wet milling, dry milling |
| Wet milling by-products | Ethanol, corn gluten meal, corn gluten feed, corn germ meal, corn starch, corn oil, corn syrup, high fructose corn syrup |
| Dry milling by-products | Ethanol, distillers' grain, carbon dioxide |
| Ethanol blends | E10, E85 |
| E10 blend | 10% ethanol |
| E85 blend | 85% ethanol |
| Most common blend | E10 |
| Number of fuel ethanol production facilities | 3 |
| Total capacity of production facilities | 440 million litres per year |
| Production capacity location | New South Wales, Queensland |
| Feedstock used | Waste wheat, sorghum, molasses |
| Ethanol production from molasses | 60 million litres per year |
| Ethanol production from wheat | 115 million litres per year |
| Ethanol production from sugarcane and sorghum | 350 million litres |
| Ethanol production from sugarcane | 100 million litres per year |
| Ethanol consumption | 219 million litres in 2018 |
| Ethanol exports | Record level in 2017 |
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What You'll Learn
Ethanol production from grain
Ethanol is a colourless alcohol made through the fermentation of biomass. This process uses glucose derived from sugars, starch, or cellulose. In Australia, ethanol is primarily produced from waste wheat starch, grain sorghum, and molasses. There are three major fuel ethanol production facilities in the country, with a total ethanol production capacity of around 440 million litres per year. Approximately 68% of this production occurs in New South Wales, at a single facility in Nowra.
Ethanol is a popular alternative fuel, and its addition to petrol is mandated in two Australian states: New South Wales and Queensland. This is designed to reduce Australia's reliance on imported fuels and promote the use of a quality alternative fuel for the Australian motoring industry. The most common fuel blend sold in Australia is E10, which contains up to 10% ethanol blended with unleaded petrol. Ethanol-blended fuel has a reduced energy content compared to unleaded petrol, but this is not easily noticeable in terms of vehicle performance. Upon combustion, an E10 blend produces up to 5% less CO2 intensity than unleaded petrol.
Ethanol is also sold in the form of E85, which contains 85% ethanol. This blend is used in specialised vehicles, such as V8 supercars and flexible-fuel vehicles. E85 has a higher octane rating and produces fewer combustion residues. Wilmar Sugar, Australia's largest manufacturer of sugar-based ethanol, produces about 60 million litres of bioethanol per year at its Sarina Distillery, with two-thirds of this ethanol sold in Australia for use in E10 and E85 blends.
In recent years, Australia has increased its exports of ethanol, primarily to Asian countries. However, the country has faced challenges in consistently implementing policies and mandates related to ethanol use, leading to uncertainty and discouraged investment in the sector. To meet its commitments under the Paris Agreement, Australia aims to reduce GHG emissions significantly by 2030, but current schemes do not include targets for increased biofuel usage. Nevertheless, with favourable tax structures for domestic production, Australia has the potential to increase ethanol consumption and production in the future.
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Ethanol blends
Ethanol is a biofuel made by the fermentation of biomass, using glucose derived from sugars, starch, or cellulose. In Australia, ethanol is primarily produced from waste wheat starch, grain sorghum, and molasses.
The addition of ethanol to fuel is mandated in two Australian states: New South Wales and Queensland. These mandates aim to reduce Australia's reliance on imported fuels and promote the use of alternative fuels in the motoring industry. While ethanol blends have a slightly lower energy content than unleaded petrol, they offer a more sustainable option with a reduced CO2 intensity of up to 5% less than unleaded petrol in an E10 blend.
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Biofuel consumption
Despite Australia's large feedstock supplies for bioethanol production, including grains and molasses, and robust supplies of feedstock for biodiesel production, such as canola, tallow and used cooking oil, only a tiny proportion of these are used for domestic biofuels production. This is due to a combination of factors, including limited mandate support, low international oil prices, high feedstock prices, and insufficient tax relief.
However, two Australian states, Queensland and New South Wales, have introduced biofuel mandates. In Queensland, service stations must ensure that ethanol accounts for 3% of their total regular and ethanol-blended unleaded petrol sales each quarter, while New South Wales requires bioethanol to make up 6% of petrol sales, meaning 60% must be E10.
There has been a significant push in research into the development of first-generation and second-generation biofuels, with new feedstocks under development, including Indian mustard seeds, Millettia pinnata, Moringa oleifera, and algae. Australia is well-positioned to provide key inputs to global biofuel production, and while biofuel consumption remains low domestically, Australia's exports of canola seed and tallow are used for biofuel production internationally.
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Ethanol production facilities
Australia has three major fuel ethanol production facilities that primarily produce ethanol from waste wheat starch, grain sorghum, and molasses. These facilities have a total capacity of around 440 million litres per year, with approximately 68% of this production occurring in New South Wales, at a single production facility in Nowra. The largest ethanol producer in Australia is the Manildra Group in Bomaderry, which produces 300 million litres of ethanol annually.
There are two methods used to produce ethanol from grain: wet milling and dry milling. Wet mill facilities are 'bio-refineries' that produce a host of high-value products. They produce more valuable by-products than the dry mill process, such as corn gluten meal, which can be used as a natural herbicide or high-protein supplement in animal feeds. Dry mills produce ethanol, distillers' grain, and carbon dioxide. The carbon dioxide is a co-product of the fermentation, and the distillers' dried grain with solubles (DDGS) is a non-animal-based, high-protein livestock feed supplement produced from the distillation and dehydration process.
The second Queensland ethanol plant is operated by Wilmar and produces 60 million litres of ethanol annually by fermenting molasses, a by-product of sugar production. Wilmar sells about two-thirds of this ethanol to the Australian market for use in E10 and E85 blends of petrol. E10 contains 10% ethanol, and E85 contains 85% ethanol. The most common blend is E10, which is available at over 600 service stations nationally.
Several new ethanol plants have been proposed for the near future, including a US$400 million sugar ethanol plant in North Queensland, an ethanol plant in Deniliquin producing 115 million litres of ethanol from wheat, and a US$600 million plant producing 350 million litres of ethanol from sugarcane and sorghum.
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Ethanol exports
Ethanol is a colourless alcohol made by the fermentation of biomass, using glucose derived from sugars, starch, or cellulose. In Australia, ethanol is primarily produced from waste wheat starch, grain sorghum, and molasses. The country has a total capacity to produce around 440 million litres of ethanol per year, with approximately 68% of this production occurring in New South Wales.
Ethanol fuel blends are available in Australia in different proportions, such as E10 and E85, containing 10% and 85% ethanol, respectively. While E10 is the most common blend, offered at over 600 service stations across the country, E85 is used mainly in V8 supercars and flexible-fuel vehicles.
Despite being a net exporter of ethanol, Australia's ethanol exports are primarily non-fuel grades supplied to Asian countries. In recent years, Australia has recorded an increase in ethanol exports, reaching a record level in 2017. However, there has been a lack of consistent policy implementation, consumer information, and incentives in the ethanol sector.
To meet its commitments under the Paris Agreement, Australia aims to reduce GHG emissions significantly by 2030. While ethanol consumption in Australia is projected to remain stable at a low rate, there is potential for increased ethanol use in the future with stronger policies and incentives.
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Frequently asked questions
Ethanol is a colourless alcohol made by the fermentation of biomass, using glucose derived from sugars, starch or cellulose.
There are currently two methods used to produce ethanol from grain: wet milling and dry milling. Dry mills produce ethanol, distillers' grain and carbon dioxide. Wet mill facilities are ‘bio-refineries’ that produce a host of high-valued products.
Ethanol is used as a biofuel in Australia. It is added to fuel in the form of E-10 and E-85 blends.
There are three major fuel ethanol production facilities in Australia, with a total capacity of around 440 million litres a year. Approximately 68% of this production occurs in New South Wales, at a single production facility in Nowra.
