Australian Sugar Manufacturers (ASM) has called on the Australian Government to introduce a national ethanol mandate, saying it would provide the most affordable path to low-carbon liquid fuels and strengthen the country’s fuel security.
ASM Chief Executive Officer Ash Salardini said a nationwide mandate, based on Queensland’s E10 fuel requirements, would give investors the confidence needed to expand domestic ethanol production and support the growth of sustainable aviation fuel and biodiesel.
He said Australia needs a practical and cost-effective plan to reduce emissions from liquid fuels, particularly in sectors such as aviation, construction and mining, where large-scale electrification is not currently possible.
According to Salardini, these sectors will continue to rely on low-carbon liquid fuels to meet net-zero goals. He said ethanol is a key ingredient in producing such fuels at scale, but Australia does not currently have enough local production capacity.
Salardini said the sugar industry is well placed to respond. The sector already operates one of the country’s two ethanol plants, and several existing sugar mills could be converted to produce ethanol.
He added that increasing the use of ethanol in E10 fuel blends over the next decade would offer the lowest-cost way to cut emissions from liquid fuels. As road transport becomes more electrified and the cost of bio-refining moves closer to that of fossil fuels, ethanol production could be redirected towards sustainable aviation fuel and biodiesel.
However, he said expanding production would require major investment and that without clear national policy to guarantee demand, there would be little commercial incentive to proceed.
ASM said a strong national mandate would help unlock billions of dollars in private investment, provide a low-cost way to reduce emissions in transport, support the development of sustainable aviation fuel and biodiesel, improve fuel security and boost regional jobs.
Salardini also said Australia should address shortcomings seen in existing state-based schemes. He noted that exemptions and loopholes in Queensland’s mandate have weakened demand and reduced investor confidence.
He said a clear and enforceable national policy is needed to give the industry certainty.
ASM believes investing in domestic ethanol production would bring long-term economic gains, create jobs and strengthen regional communities, particularly in Queensland.
Salardini said Australia must decide whether to continue relying on imported feedstocks or build a strong domestic industry that supports regional economies and delivers affordable emissions cuts. He described a national ethanol mandate as the fastest and most affordable way to achieve that goal.
