We are the voice of the Australian sugar manufacturing sector

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.

Australian Sugar Manufacturers (ASM) is calling on the Federal Government to urgently engage with the domestic ethanol industry, warning that Australia is failing to use an immediate, home-grown solution to strengthen national fuel security.

Australia already has just under 370 million litres of ethanol production capacity, yet government has failed to meaningfully engage with the sector on how this capability can support Australia’s fuel security.

ASM has stated that Australian ethanol producers have under-utilised manufacturing capacity and with the right policy settings, additional ethanol fuel supply is readily available.

At a time when the Federal Government is making decisions affecting fuel standards and supply chains, ASM has highlighted that ethanol continues to be overlooked despite being cleaner, domestically produced and ready to scale at a national level. Australian Sugar Manufacturers Chief Executive Officer, Ash Salardini said the industry is ready now, but government action is lagging. “Australia already has nearly 370 million litres of ethanol production capacity, yet the government hasn’t come to us to discuss what role this sector can play in strengthening Australia’s fuel security,” Mr Salardini said.

Australian Sugar Manufacturers (ASM) is urging the Queensland and Federal Governments to include cane rail infrastructure in disaster recovery funding following severe flooding in the Bundaberg region. ASM Chief Executive Officer, Ash Salardini said while it is still too early to determine the full extent of the damage, there are serious concerns about impacts to farms and the region’s vital cane rail network.

“Our first thoughts are with the communities affected by flooding in and around the Bundaberg region, including workers and families connected to our two sugar manufacturing facilities in the region,” Mr Salardini said.

“Currently it is too early to fully assess the damage, but there will likely be impacts to farms and to the cane rail network that underpins our local sugar industry.”

Australian Sugar Manufacturers (ASM) is calling on the Australian Government to act now to strengthen its fuel security and protect regional industries as global instability in the Middle East threatens up to 20 per cent of the world’s oil supply.

ASM Chief Executive Officer, Ash Salardini said a national bioethanol fuel mandate is essential to reduce Australia’s exposure to global fuel shortages and securing the long-term future of Australia’s sugar manufacturing sector.

“Australia needs a plan immediately to secure the future of our domestic fuel supply,” said Australian Sugar Manufacturers Chief Executive Officer, Mr Ash Salardini.

“With the Strait of Hormuz currently closed due to ongoing conflict in the Middle East, blocking 20 per cent of global oil supply – Australia doesn’t really have a plan A, let alone plan B.”

Australian Sugar Manufacturers (ASM) is calling on the Australian Government to introduce a national ethanol mandate to unlock the most affordable pathway to low-carbon liquid fuels and secure Australia’s sovereign fuel capability.

ASM Chief Executive Officer, Ash Salardini said a national mandate modelled on Queensland’s E10 requirements would provide the certainty needed to drive investment in domestic ethanol production and support the development of sustainable aviation fuel (SAF) and biodiesel.

Today, leaders from the Australian sugar manufacturing sector are converging on Queensland Parliament to present at the Parliamentary Inquiry into Sugarcane Bioenergy Opportunities in Queensland. Senior industry leaders will highlight the significant opportunities for the Queensland economy through sugar industry diversification into biofuels and bioenergy, however, this agenda can only be successful with effective government-industry collaboration. This agenda is even more urgent, as the sugar industry is facing a significant downturn in global sugar prices.

To kickstart the diversification agenda into biofuels and bioenergy, Australian Sugar Manufacturers has developed a $40 million government-industry proposal, focusing on effective market incentives that can underpin a successful Queensland biofuels and bioenergy capability, developing shovel ready biofuel projects that can attract earmarked federal funding, and further transforming industry R&D to ensure that we are at the cutting edge of innovation that will provide us with an enduring competitive advantage in the production of sugar, biofuels and bioenergy.