Alternative Fuels Group

Welcome to the Alternative Fuels part of the VTA. This section has been designed to promote and produce accurate and targeted information for the freight and logistics industry on a range of alternative fuels, including, but not limited to, bio-diesel. This section includes documents for downloading and information on the inclusion of Biofuel and alternative fuel support information.

What are Biofuels?

A ‘Biofuel’ is a term generally used to describe fuels derived from either the fermentation of biomass (‘fuel ethanol’) or processed form vegetable, animal and waste oil (‘biodiesel’). As a ‘renewable’ replacement for crude-oil derived fuels, Biofuel has the potential advantages both environmentally (direct emissions and sustainability) and economically (regional development and as an import substitution). However the commercial, technical and economic risks associated with reaching an industry critical mass remain high.

State Government Objectives

The Victorian government had set a target of 5% Biofuels (400 Mega liters of ethanol or biodiesel) by 2010. In the 2005 Moving Forward statement, the Government also committed to developing an industry road map for the Biofuels industry. It identified the need for industry and government action on a number of fronts in order to grow the Biofuel industry including regulation, distribution and marketing of Biofuels. It also identified that current biodiesel production capacity in Australia is greater than 280 ML, however actual production is well below this figure.

The development and use of Biofuels will assist regional economies by attracting new investment in plant and equipment, as well as reducing air emissions in urban environments.

Key factors to be addressed in the future:

  • The establishment of guidelines for storage, transport and the handling of biodiesel
  • Commitment from the oil majors, independents, Governments, and key stakeholders to the use of biodiesel
  • Setting of the Standard for biodiesel
  • Gaining some commitment for a sustainable predictable tax regime