Australia's Queensland invests in biodiesel to cut reliance on fuel imports
The government of Australia's Queensland state on Wednesday said it would invest A$25 MM (US$18 MM) in a renewable diesel project, casting the decision as the first step towards reducing its reliance on imported fuel.
Australia has been grappling with high fuel prices and the threat of shortages since the U.S.-Israeli war on Iran curtailed the flow of oil from the Middle East.
Oil prices have risen globally and many countries are seeking to increase their biofuel production and use in response.
The Queensland government said it was investing in production at the Lytton refinery in Brisbane, operated by fuel producer Ampol.
The project will turn waste, vegetable oils and animal fats into 20 MM liters (l) of renewable diesel a year starting from 2028, it said in a statement.
It added that it had more money to invest, biofuels were one of its priorities and hundreds of millions of liters could be produced by early next decade.
"These projects are important to ensure we are never again left at the mercy of foreign nations at the end of a global supply chain," Queensland Premier David Crisafulli said.
Twenty MMl of biofuel is equivalent to around 125,000 bbl of oil, or roughly 10% of Australia's daily oil usage of around 1 MMbpd.
Australia has a massive farm sector that has long called for the creation of an industry to turn its products into fuel, but producers say they need more government support to make investments viable.
(US$1 = A$1.3968)
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