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Biodiesel is a renewable source of energy that can be used to reduce carbon emissions. In Australia, biodiesel is usually made from vegetable oil, animal fats (tallow), or used cooking oil. The production process involves reacting these substances with an alcohol, such as ethanol or methanol, in the presence of a catalyst, creating mono-alkyl esters (biodiesel) and glycerine as a by-product. This process is known as transesterification and esterification. Biodiesel blends, such as B5 and B20, are becoming more accessible at service stations across Australia, and up to 5% biodiesel can be included in any diesel sold without additional labelling. While Australia is a small producer of biodiesel, accounting for 0.1% of world production in 2017, it is taking steps towards increasing its production and usage.
How to Make Biodiesel Australia
| Characteristics | Values |
|---|---|
| Definition | Diesel fuel obtained by esterification of oil derived from plants or animals |
| Feedstocks | Tallow, used cooking oil, oilseeds, vegetable oil, animal fats, non-food biomass, straw, cotton trash, urban waste streams, purpose-grown crops (grass, woody biomass, algae) |
| Process | Reaction of feedstocks with an alcohol (ethanol or methanol) with a catalyst in a process called transesterification and esterification to produce mono-alkyl esters (biodiesel) and glycerine (by-product) |
| Blend Levels | B5, B20, E10, E85 |
| Availability | Biodiesel blends B5 and B20 are becoming more available at service stations across Australia; E10 is available at over 600 service stations |
| Labelling | Retailers must label blends containing fuel ethanol on the dispenser; up to 5% biodiesel can be included in any diesel without additional labelling |
| Production | In 2018, total commercial biofuel production was estimated at 290 million litres (250ML ethanol, 40ML biodiesel); Australia accounted for 0.2% of world bioethanol production and 0.1% of world biodiesel production that year |
| Uses | Biodiesel is used as fuel for vehicles, and all engines that take diesel can use biodiesel; ethanol is also used as fuel for vehicles, usually mixed with petroleum to produce a blended motor fuel |
| Benefits | Reduces carbon and harmful emissions, reduces farmers' exposure to oil price volatility, potential for farmers to grow their own fuel or generate income by selling feedstocks |
| Limitations | Higher concentrations of biodiesel can cause issues with current infrastructure and engines |
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What You'll Learn
Biodiesel blends
Biodiesel can be blended and used in many different concentrations. The most common blends are B5 (up to 5% biodiesel) and B20 (6% to 20% biodiesel). B100 (100% biodiesel) is rarely used as a transportation fuel due to a lack of regulatory incentives and pricing. It is typically used as a blendstock to produce lower-percentage blends. B5 blends are ASTM-approved for use in any compression-ignition engine designed to be operated on petroleum diesel. B20 is a common blend as it represents a good balance of cost, emissions, cold-weather performance, and compatibility with conventional engines. However, blends above 20% biodiesel may cause issues with current infrastructure and engines.
In Australia, biodiesel blends are becoming increasingly available at service stations in all states. Up to 5% biodiesel can be included in any diesel sold in Australia without additional labelling. The New South Wales mandate stipulates that biodiesel be at least 2% of all diesel sold.
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Bioethanol
The addition of ethanol to fuel is currently mandated in two Australian states: New South Wales and Queensland. These mandates aim to reduce the country's reliance on imported fuels and promote the use of alternative fuels in the motoring industry.
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Feedstocks
There is a range of other feedstocks that can be used to produce biodiesel in Australia. These include forestry residue, agricultural residues, organic by-products from industry, and purpose-grown crops such as grass, woody biomass, or algae. Australia has an abundance of biomass available for feedstock, providing a platform for large investment in the biofuels sector.
One of the benefits of using biofuels is that they can help reduce waste. For example, molasses, a byproduct of sugarcane production, contributes 22% to world ethanol production. Australia is the world's third-largest sugarcane producer. Additionally, using biofuels can help reduce a farmer's exposure to oil price volatility and potential supply disruptions.
However, one of the concerns with using biofuels is the increase in food market prices due to arable land being converted from food crops to biofuel production. This has led to a debate over the production and investment in biofuels in Australia. Additionally, while biofuels can reduce greenhouse gas emissions compared to fossil fuels, the emissions vary depending on the feedstock used and must be accounted for. For example, when using an E10 blend, greenhouse gases compared to unleaded petrol are 1.7% lower for wheat and 5.1% lower for molasses.
Overall, Australia has the capacity to deliver feedstock for biodiesel production and is well-placed to provide key inputs to global biofuel production.
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Legislation
Australia has published a fuel standard for biodiesel under the Fuel Quality Standards Act 2000. This Act provides a legislative framework for setting national fuel quality and fuel quality information standards. The Fuel Standard (Biodiesel) Determination 2003 defines biodiesel as "a diesel fuel obtained by esterification of oil derived from plants or animals".
The Fuel Standard (Biodiesel) Determination 2003 also outlines the technical requirements of the standard, which include limits found in both ASTM D6751 and EN 14214, though it is not identical to either of these. The Australian biodiesel standard is therefore substantially different from US and European biodiesel specifications.
The Australian diesel fuel standard allows up to 5% biodiesel in pump fuel. Biodiesel blends, most commonly B5 and B20, are becoming increasingly available at service stations in all Australian states. Up to 5% biodiesel can be included in any diesel sold in Australia without additional labelling. Higher concentrations of conventional biodiesel can cause issues with current infrastructure and engines due to higher oxygen and moisture levels.
In terms of taxation, biofuels are subject to excise duty. Licensed excise manufacturers generally blend biodiesel with diesel to create blended petroleum products. If you have already paid excise duty on both components of the blend, you do not need an excise licence to undertake the blending process. You must pay customs duty when you import a biofuel if you use it in excise manufacture (including blending with other biofuels) within a dual excise and customs-licensed premise. The customs liability will be payable at the time the biofuel is blended. The entire biofuel blend will be subject to excise duty when it is delivered from the licensed premises into the Australian market. However, you can deduct an amount equal to the excise duty that would have been payable on the portion of imported biofuel as if it had been manufactured in Australia.
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Advantages
Biodiesel is an alternative to fossil fuels and is typically made from vegetable oils, animal tallow or fat, and used cooking oil. It is blended with regular diesel fuel and is widely available in Australia. Biodiesel offers several advantages over traditional diesel fuel:
Environmental Benefits
Biodiesel is a clean fuel that produces significantly lower emissions than petroleum diesel. It is free from hydrocarbons and sulphur, making it non-toxic and biodegradable. This helps to reduce carbon emissions and improve air quality, particularly in sectors such as mining, heavy transport, aviation, and marine industries.
Engine Compatibility and Performance
Biodiesel is compatible with virtually all diesel engines and does not require any engine modifications for blends of B20 and below. It can be used as a straight drop-in or blended with fossil fuels. Biodiesel also improves fuel lubricity, even at low levels, which can enhance engine performance and longevity.
Cost-Effectiveness
Biodiesel is more affordable than traditional diesel as it is made from vegetable oils, which are easier to process than fossil fuels. This results in a cheaper overall fuel cost. Additionally, farmers can potentially grow their own fuel, further reducing costs and creating an additional income stream by selling feedstocks for biofuel production.
Energy Security and Sustainability
Biodiesel reduces dependence on fossil fuels and provides a renewable and sustainable energy source. This decreases farmers' exposure to volatile oil prices and potential supply disruptions. Biodiesel can be produced locally, utilising waste products and purpose-grown crops, further enhancing energy security and sustainability.
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Frequently asked questions
Biodiesel is a type of biofuel produced from organic matter (biomass), including plant materials and animal waste.
In Australia, biofuel is primarily used as a replacement for diesel and petrol (gasoline) in vehicles.
Biodiesel is usually made from vegetable oil, animal fats (tallow), or used cooking oil. It is created through a reaction with an alcohol, such as ethanol or methanol, in the presence of a catalyst.
Biodiesel can reduce carbon emissions and harmful emissions from diesel-powered vehicles. It also reduces farmers' exposure to oil price volatility and potential supply disruptions.
Biodiesel fuels are available in various blend levels, such as B5 (5% biodiesel) and B20. Up to 5% biodiesel can be included in any diesel sold in Australia without additional labelling.
