Govt backs cleaner, greener, biofuels industry

A new $5 million fund to support Victoria’s developing biofuels industry will help provide cleaner, greener fuel alternatives and create new regional job and investment opportunities, Regional and Rural Development Minister John Brumby said today.

Mr Brumby announced the new Biofuels Infrastructure Grants (BIG) - to be funded through the Regional Infrastructure Development Fund - at the Ethanol 2007 conference in Melbourne.

“This new initiative will assist in the development of new biofuels projects and help to ensure Victoria is able to meet its five per cent biofuels target by 2010,” Mr Brumby said.

“Biofuels have the potential to become a viable alternative fuel supply for petrol and diesel, providing environmental benefits in the form of improved urban air quality and reduced greenhouse emissions.

“A viable biofuels industry also has enormous potential to create new jobs and investment, particularly in regional and rural Victoria.”

Biofuels projects in Victoria include:

· The creation of a 60ML biodiesel plant at Barnawatha that will create 24 direct jobs and 48 indirect jobs;
· A 100ML plant at Swan Hill creating 40 direct and 80 indirect jobs; and
· A 150ML plant at Geelong that will create 20 direct and 40 indirect jobs.

Mr Brumby also launched Driving Growth: A Road Map and Action Plan for the Development of the Victorian Biofuels Industry which sets out a series of actions to drive development of the industry in Victoria.

Key actions for the Government and industry to undertake include:

· Securing domestic production of biofuel feedstocks by working with farmers to ensure the right varieties of feedstock are being grown and developed to supply the industry;
· Increasing distribution of biofuels products with major oil company networks by establishing the proper practices for the storage, handling and transport of biofuels;
· Ensuring biofuel production in Victoria is internationally competitive by working with the industry to develop competitive manufacturing facilities in Victoria;
· Ensuring investors have confidence in returns through good communication and proper collaboration with the investment community and the biofuels industry; and
· Raising consumer demand for biofuel products by educating the community and raising awareness to increase understanding and to dispel misconceptions of biofuel products.