We are the voice of the Australian sugar manufacturing sector

As the war in the Persian Gulf grinds on, Australia has yet to tap into a resource that can provide up to 10 days of petrol supply across the nation.

Australian Sugar Manufacturers (ASM) is calling on the Federal Government to use the Budget to introduce a national ethanol mandate that would strengthen Australia’s fuel security, support regional manufacturing jobs and unlock billions in new investment across the agricultural and biofuels sectors.

ASM CEO, Ash Salardini said Australia could no longer afford to lag behind global competitors on renewable liquid fuel policy.

“A national ethanol mandate is one of the most practical and immediate actions the Government can take to improve Australia’s fuel security. The industry can produce up to 400 million litres of ethanol per year, securing around 10 days of national petrol supply,” Mr Salardini said.

For the first time, four of Australia’s most influential agricultural bodies – the National Farmers’ Federation, GrainGrowers, Australian Sugar Manufacturers and CANEGROWERS – have joined forces to urge the Australian Government to introduce an immediate national mandate for ethanol and biodiesel to bolster fuel security, support regional jobs and unlock new value-adding opportunities for Australian agriculture.

Together, the four bodies speak for more than 150,000 Australian farming businesses and over 21sugar manufacturing facilities- spanning grain, oilseed, pulse and cane growers as well as sugar manufacturers- representing a nationally significant cross-section of Australia’s farming and regional manufacturing base and contributing billions of dollars to regional economies.

The agricultural and manufacturing industry bodies warn the current fuel crisis has exposed the strategic vulnerability created by Australia’s over-reliance on imported fuel, and the failure to fully utilise Australian-made ethanol and biodiesel as practical, domestic fuel security solutions. They emphasise that domestically produced biofuels offer a practical, immediate pathway to reduce reliance on imported fuel while delivering economic benefits across rural and regional Australia.

Today, the Australian Sugar Manufacturers (ASM) welcomed the Crisafulli Government’s Queensland Fuel Security Plan that aims to increase fuel refining and production capacity in Queensland.

“A central, cross-agency and coordinated fuel security plan is exactly what the doctor ordered, and sugar manufacturers commend the Crisafulli Government for taking a holistic approach to this fuel crisis,” said Mr. Ash Salardini, CEO of the Australian Sugar Manufacturers.

Ethanol must be central to Queensland fuel security future, with the ability to provide solutions for securing fuel security in the short and long term.

“We can make 400 million litres of ethanol today in this country – that is an equivalent of 10 additional days of petrol for Australia. Not in five years, not in twelve months, but today.”

Australian Sugar Manufacturers (ASM) is calling on the Queensland Government to take immediate and decisive action to unlock the full potential of ethanol, warning that without stronger policy settings Queensland risks falling behind in fuel security, regional development and emissions reductions.

ASM Chief Executive Officer, Ash Salardini said the Queensland sugar industry is ready to play a central role in strengthening the state’s fuel resilience, but requires clear and ambitious government leadership to do so.
“The Crisafulli Government is uniquely positioned to lead the nation in ethanol production. Unfortunately, policy ambition from the government does not match the scale of opportunity in front of us.”

“The Queensland Government’s recent announcement regarding exploration activity in the Taroom Trough is a positive signal that regional industry and energy security remain important priorities. However, it must be part of a broader, coordinated energy strategy that includes utilisation of existing ethanol capacity, and spurs investment in new expanded capacity in the long-term”.

Australian Sugar Manufacturers have identified that ethanol represents an immediate, scalable and locally produced solution to one of Australia’s most pressing strategic vulnerabilities – its reliance on imported liquid fuels.

More than a month into the national fuel crisis, Australian Sugar Manufacturers and the domestic ethanol industry are continuing to seek commercial discussions with government on how ethanol can be utilised to strengthen Australia’s fuel security in the short term, while developing sovereign capability in ethanol, biofuels and sustainable aviation fuel (SAF) over the long-term.

“Australia currently produces enough ethanol to supply just under 3% of annual petrol demand, equivalent to approximately 10 additional days of national petrol supply”, said Australian Sugar Manufacturers Chief Executive Officer, Ash Salardini.

“With targeted adjustments to maintenance cycles, the industry has the capacity to increase production from around 360 million litres closer to 400 million litres annually. Currently, more than half of Australia’s ethanol production is not used for domestic fuel. This is a huge missed opportunity – one of the few domestic solutions to this crisis is being ignored”, said Mr. Salardini.

The following media release highlights the Queensland Government has supported a number of key recommendations that will help build a pipeline of shovel-ready projects and accelerate industry diversification.

Key recommendations supported by the Queensland Government include the following:

• Funding for project development – Ensuring that there is a shovel ready pipeline of sugar biofuels, biogas and bioenergy projects available when demand side policies are implemented.
• Strategic enabling investment – Targeted investment to ensure Queensland secures its fair share of Federal Government funding for low carbon liquid fuels and industry policy, unlocking additional private capital investment.
• ADF supply chain opportunities – Funding a pre-feasibility study into a Queensland-based sugar biofuel supply chain for the Australian Defence Force, supporting a cost-effective and reliable domestic fuel source.
• Advanced manufacturing R&D capability – Co-investment with industry and the Government in research and development capability to support innovation in advanced sugar manufacturing and new low-emissions products.
• National biofuels mandate advocacy (including an ethanol mandate) – Queensland Government advocacy for a national biofuels mandate, including strong weighting towards local feedstocks with the lowest carbon intensity profile.
• Improved access to finance – Supporting mechanisms to improve access to finance for sugar manufacturers operating under cooperative structures.
• Cogeneration investment certainty – Exploring opportunities for offtake agreements with sugar manufacturers, including fixed or floor pricing arrangements to reduce exposure to negative electricity pricing.
• Industry diversification strategy – Delivering these policy reforms as part of a broader sugar industry diversification strategy.

Australian Sugar Manufacturers (ASM) is calling on the Federal Government to convene a national roundtable with the sugar and grains industries to develop a coordinated pathway to expand domestic ethanol production and strengthen Australia’s national fuel security.

ASM Chief Executive Officer, Ash Salardini said Australia has an immediate opportunity to leverage existing manufacturing capacity to increase the availability of ethanol for fuel use and mitigate our exposure to global fuel supply shocks.

“Australia already has the feedstock, infrastructure and technical capability to significantly increase ethanol production, but we need a clear and coordinated policy framework to unlock investment,” said Mr Salardini.

“The ethanol industry has enough ethanol to provide just under 3% of Australia’s annual petrol demand right now, making us a solution to the current fuel shock.”

The Australian Sugar Manufacturers warns against oversimplified approaches to Australia’s fuel security challenges, calling for a multipronged approach, with a particular focus on increasing domestic ethanol production and utilisation. Currently, Australia underutilises its ethanol capacity, despite having available feedstock and capability to significantly expand production at a fraction of the cost of large-scale electrification.

The media release highlights that a time of heightened global uncertainty and pressure on international fuel supply chains, Australia remains vulnerable, importing the majority of its refined fuels and holding around 30 days of reserves. The sugar manufacturing sector is calling for stronger engagement between government and the domestic ethanol sector.