Queensland to implement 3% ethanol mandate

By Erin Voegele | December 08, 2015

The government of Queensland, Australia, recently passed a bill that requires the fuel industry to comply with a 3 percent ethanol mandate for gasoline and a 0.5 percent mandate for biobased diesel. The mandates take effect Jan. 1, 2017.

According to information released by the Queensland government, the Queensland Parliament passed the measure Dec. 1. The mandate is designed to drive investment and development of the local biofuel  industry, contribute to regional job growth and creation, and contribute to the reduction of greenhouse gas emissions. It also aims to lead to advanced biofuel production technologies.

The government also indicated it is considering pathways to raise the mandate over time. Two pathway options are being proposed for ethanol, and two for biobased diesel. The first set of option pathways run through 2020. The second set are similar, but are based on a more gradual increase. According to information released by the Queensland government, it will identify a preferred pathway for ethanol and biobased diesel following a consultation. Any increases in mandate percentages set out in these pathways will be subject to a review by the Queensland Productivity Commission, with subsequent percentages set in regulation.

Under pathway option one for ethanol, the ethanol mandate would increase to 4 percent by July 1, 2019, with E10 accounting for a minimum of 40 percent of regular unleaded gas sales. Pathway option two would increase the ethanol mandate to 4 percent by July 1, 2020, with E10 accounting for a minimum of 40 percent of regular unleaded gas sales.

For biobased diesel, the first pathway option would set the mandate at 2 percent as of July 1, 2019. Under pathway option two, the mandate would remain at 0.5 percent until July 1, 2018. It would then increase to 1 percent on July 1, 2019 and 1.5 percent on July 1, 2020.

A consultation on the pathways is open through Dec. 11.

Additional information is available on the Queensland website.