Agriculture and manufacturing bodies have jointly called on the Australian Government to introduce an immediate national ethanol and biodiesel mandate, arguing it would strengthen domestic manufacturing capacity, improve fuel security and create new value-adding opportunities across regional industries, according to the National Farmers’ Federation.
The call is backed by the National Farmers’ Federation, GrainGrowers, Australian Sugar Manufacturers and CANEGROWERS, which together represent more than 150,000 farming businesses and over 16 sugar manufacturing facilities across Australia.
The groups say the proposal would support a broader manufacturing transition by expanding domestic production of low-carbon fuels and reducing reliance on imported energy.
In a joint statement, the organisations said Australia’s current fuel situation has highlighted “strategic vulnerability” linked to dependence on imported fuels, and argued that greater use of locally produced ethanol and biodiesel could deliver immediate economic and supply-chain benefits.
They said a national mandate would help create demand for existing domestic manufacturing capacity while encouraging further investment in regional processing facilities, turning agricultural products and by-products into higher-value manufactured fuels within Australia.
The groups are calling for an immediate national mandate for ethanol and biodiesel, a staged increase in demand targets over time, and the inclusion of Australian-made biofuels in the Federal Government’s Cleaner Fuels Program as eligible low-carbon fuels.
National Farmers’ Federation chief executive Mike Guerin said the situation highlighted risks in Australia’s reliance on global supply chains.
“What this situation has shown is how vulnerable Australia is to global shocks and how quickly disruptions to critical inputs can put food production and regional businesses at risk. Quite simply, we cannot afford to be in this position again,” Guerin said, according to the National Farmers’ Federation.
He said farmers already contribute to international biofuel supply chains and that expanding domestic manufacturing capacity made sense.
“Farmers already supply products that power biofuel industries overseas, it’s only logical and smart to support a domestic industry,” he said.
GrainGrowers chief executive Shona Gawel said domestic manufacturing mechanisms were needed to ensure Australian grain could be used in local ethanol production.
“GrainGrowers urges the government to bring forward demand-side mechanisms to ensure locally produced ethanol can make its way into Australia’s fuel mix,” Gawel said.
She added that Australian grain production was well suited to support manufacturing inputs for ethanol.
“Australian sorghum and wheat are both well placed to feed into domestic ethanol production,” she said, adding that increased ethanol use would support regional economies and market diversity.
Australian Sugar Manufacturers chief executive Ash Salardini said ethanol could play a role in addressing immediate fuel supply pressures while expanding long-term manufacturing output.
“Ethanol is one of the only supply side solutions available to the Government for the fuel crisis today, providing more petrol for Australian consumers as this crisis rolls on,” Salardini said.
He said expanded production could significantly increase Australia’s biofuel manufacturing capacity over time, pointing to potential output of more than 3 billion litres.
CANEGROWERS chief executive Dan Galligan said the sugar industry was prepared to expand its role in renewable fuel manufacturing alongside existing sugar production.
“After decades of advocacy, the time for action is now,” Galligan said.
He noted the upcoming cane harvest in Queensland and New South Wales and said the sector already produces significant volumes of cane for sugar manufacturing.
“Ethanol made from Australian crops like sugarcane can replace a portion of imported petrol and provide a reliable domestic supply. Just as we see happening right around the world,” he said.
Galligan said a mandated approach would help drive investment and expand manufacturing opportunities within the sector.
