Alternative Fuels Australia

WA biodiesel dealt a blow

Posted by Car Geek on August 25, 2007

B20 pump in WA, image from licenced under CC 2.0. Western Australian biodiesel producer Australian Renewable Fuels Ltd is suffering after a breakdown in negotiations with “a major multinational oil company” to supply biodiesel blends in its service stations around the state, citing “complexities with the logistics of blending biodiesel with bulk mineral diesel at the oil company’s WA terminal”. ARF chief John Lillywhite said that although there is demand for biodiesel in Australia’s largest state, the fuel industry and federal government were not interested in assisting the industry.

“With one exception, you’ve got a hostile major fuel industry with an indifferent federal government,” he said. “So far, the commitment to Australian biodiesel policy and strategy has been extremely poor.”

ARF’s major current contracts include a 10 million litre annual supply to Caltex in WA and South Australia, and 1.5 million litres annually to Wesfarmers Premier Coal, as well as 500,000 litres to an as-yet-unnamed WA buyer.

(Source: WA Business News)


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