Biodiesel Supply Chain in Australia

[Vivid Adventures Member Find all posts View Profile Close Vivid Adventures]

It would be good to have a summary of the Biodiesel supply chain in Australia:

1. who makes it where from what and sourced from where

2. how much they make

3. where do they sell it (wholesale/export/distribution to retail)

4. who sells it retail and where.

SAFF Fuels in SA apparently get their Biodiesel from interstate (NSW?) surprise surprise and I wish I knew where from.

Ciao for now
Andrew.

[Robert Administrator Find all posts View Profile Close Robert]

Re: Biodiesel Supply Chain in Australia

Hi Andrew,

Welcome to the forums. You're our first South Australian here I believe!

Strangely, SA is the only state in Australia that seems to have embraced biodiesel, having it available at many bowsers. These are supplied by Biodiesel Industries Australia, who are based in Rutherford, NSW. They do about 200,000 litres/week to the transport industry and to the SAFF. They use about 30% virgin Australian canola oil and 70% waste cooking oil.

I find it odd that (as yet) no bowsers exist in NSW (actually, there aer a few in the far regions) and they have to truck it to SA before service stations will sell it.
(Unless a few of us get together, as we have here and drive up to Rutherford to fill up our own drums).

The South Australian Farmers Federation are the reason for SA's good uptake of biodiesel. They currently have 42 stations selling blended biodiesel and 3 selling B100 according to this site.

While there are bowsers opening up in Sydney metro very soon, the majority of biodiesel is being aimed either at trucking, big fleets and as a lubricity additive to low sulphur diesel by the big petroleum companies.

The other big biodiesel plant in NSW is much bigger than the BIA one in Rutherford and is run by a company called Australian Biodiesel Group . ABG currently are only looking at fleets and are cautious of supplying individuals via a servo. The NSW plant will do 40 million litres/year. They are also opening another one in QLD this year that will do 160 million litres/year. I believe that they use a higher mix of animal tallow (fat sourced from abattoirs), perhaps 60/40 tallow to veggie oil, but I'm not sure on the exact mixes, so don't quote me on that. Perhaps soon some representatives of BIA and ABG could contribute in here and tell us some more exact info.

That's a bit of a rambling explanation, but gives a bit of an overview, as I know it. Maybe someone else might have some more detailed info.

[Vivid Adventures Member Find all posts View Profile Close Vivid Adventures]

Re: Biodiesel Supply Chain in Australia

Thanks Robert.

I had not really put the B20 into the same category as B100 which is what I have found to be really good - and philosophically feels good too.

As you can see SAFF Fuels only have 3 (and one of them has now closed) leaving 2 outlets selling B100.

Most of the rest are small, independent sites, normal business hours only operations selling B20.

Your info on SAFF's supply chain is useful - I'm thinking of getting a buying group of ecotourism operators together with some shared dispensing solution.

Ciao for now
Andrew who thinks that SA's lead can be quickly reduced by a little interstate action.

[Robert Administrator Find all posts View Profile Close Robert]

Re: Biodiesel Supply Chain in Australia

I know what you mean about feeling better about B100 (I try to stay on B100 too), but don't knock B20. B20 still offers significant environmental benefits over B0 (B0 is not really a real term, but you know what I mean ).
I was listening to Brent Knowles from Newcastle Council speak a few months back about the biodiesel trial they had carried out. They had 13 vehicles on the trial and carried out RTA emission testing on them using B20. While the NOx, CO2, power and economy were unaffected, the particulate and black smoke emissions were 30% less. That's a pretty good result for only 20% biodiesel. NOx goes up a little on B100 anyway unless you retard your injection timing a little and/or fit a different catalytic converter.
The short story is that in their fleet of 228 vehicles, which they have since introduced to biodiesel, they found that spreading it around in thinner doses, offered more environmental benefits to just running B100 in a few vehicles.

Perhaps if you did get a bunch of tour operators together (sounds like great idea - you could also market yourselves as users of biodiesel - helps the eco-tour image too) and bought yourselves a supply to share, you could thin it down from B100 to make it last longer as needed. Getting a group together sounds like a fantastic idea - you could get some 1000L fuel cubes (you can get these quite cheaply) and maybe buy in bulk which might get you a better price.

When our Sydney purchasing group bought direct from Rutherford, we bought approx 10 drums (2,000L) and they gave us a reasonable discount, which then covered the costs of transporting it and distributing it.

But before I get too much off-topic, I'd better make another post here as I originally promised listing the biodiesel producers in Oz that have started, or are looking at starting in each state.

[Robert Administrator Find all posts View Profile Close Robert]

Re: Biodiesel Supply Chain in Australia

OK, here's the full info on the Australian Biodiesel producers

This is a summary that I scribbled down while I was at the BAA forum in Oct 2005 and my note-taking skills are not great, so don't quote me on these numbers, but here they go:

Biodiesel Industries Australia
Rutherford (NSW) Plant has been operating for a while now at 12ML/year.
Australian Biodiesel Group
Berkley Vale (NSW) plant now operational at 40ML/year.
Narangba (QLD) plant ready 2nd quarter 2006 at 160ML/year.
Australian Renewable Fuels
Adelaide (SA) and Picton (WA) plants in construction, completion dates unknown. Both will produce 44.4ML/year.
Axiom
Slated to produce 70ML/year of biodiesel by July 2007 (as well as 11ML/year of low sulphur diesel from recycled plastics). Not sure of the location of the plants. I've heard that this is currently "on hold" due to excise (but not sure about this).
Biodiesel Producers Ltd.
Barnawatha (VIC) expected to be doing 60ML/year in Jan 2007.
Natural Fuels Australia
Darwin (NT). Expected to be producing 150ML/year by Sept 2006.

By 2007, the total output of biodiesel in Australia will be around 682ML/year, which is about 4.5% of the total diesel used in Australia, roughly double what the government committed to in their piss-weak biofuels target from Sept 2005.

Point to note: Biodiesel is not limited by demand, but by supply.

[Robert Administrator Find all posts View Profile Close Robert]

Re: Biodiesel Supply Chain in Australia

Here's a summary of where the government grants for biofuels went:

First round of biofuels capital grants went to:

• CSR Distilleries Operations (ethanol) Sarina (Qld) - $4.16m
• Biodiesel Industries Australia (biodiesel) Rutherford (NSW) - $1.28m
• Schumer Pty Ltd (ethanol) Woongoolba (Qld) - $2.4m
• Biodiesel Producers Ltd (biodiesel) Barnawatha (Victoria) - $9.6m
• Australian Renewable Fuels Pty Ltd (biodiesel) Port Adelaide (SA) - $7.15m

The second round went to:

• Riverina Biofuels Pty Ltd (biodiesel) Deniliquin (NSW) - $7.15m
• Lemon Tree Ethanol Pty Ltd (ethanol) Millmerran (QLD) - $5.85m

[Tony From West Oz Vice Chairperson of WARFA Find all posts View Profile Close Tony From West Oz]

Re: Biodiesel Supply Chain in Australia

Unfortunately, the biodiesel from the ARF plants is not destined for Australian consumption. They get the clean fuels grant, but do not pay the excise as the fuel is exported, thus the Australian taxpayer is subsidising the price of biodiesel in the EU.

There may be a small proportion available to us, but it will be sold as a "premium" fuel with an appropriate "premium" price.

[Cameron Moderator Find all posts View Profile Close Cameron]

Re: Biodiesel Supply Chain in Australia

wtf!!??

That is crazy - I can't believe we are subsidising a fuel source coming from our feed stocks that we can't access and that is being sold overseas!!

Exactly which taxpayers are benefiting from that? We keep hearing that thet limitation of biodiesel is going to be the ability to supply the future demand so this just does not make any sense. Not related to Manildra by any chance are they??? Is there some other benefit to the Australian people or environment thatg I am missing here?

Hey Tony do you know who signed off on that one?

Cheers,
Cameron

[liquidgold Junior Member Find all posts View Profile Close liquidgold]

Re: Biodiesel Supply Chain in Australia

Hi Cameron,
Your missing the common theme here the same is happening with gas and oil we sell bulk to overseas and buy less back for more. This may be the case for most of our commoditys as we have low population.

Of note to is the fact that Europe is way ahead of the ball game thus their economy should power on for some years to come, which is the $$Euro. America has less diesel cars running so if they increase the uptake on Ethanol an area I lack in research they may be able to help their own cause.

[Tony From West Oz Vice Chairperson of WARFA Find all posts View Profile Close Tony From West Oz]

Re: Biodiesel Supply Chain in Australia

Cam,
They also got the grant money too.
From http://www.arfuels.com.au/default.asp?V_DOC_ID=866:
On 22 June 2004 the project was given substantial backing from the Federal Government, with an offer of $7.15 million in asssistance awarded to ARF under the first round of the Australian Government's Biofuels Capital Grants Program.

Tony

[Terry Syd Senior Member Find all posts View Profile Close Terry Syd]

Re: Biodiesel Supply Chain in Australia

Tony, good bit of researching mate. A lot of the people that are posting on this forum are new to the biofuels scene and I expect that as they bring themselves up to speed on what is going on, they are going to start having some sever emotional responses.

Some of the earlier dirty deeds are mentioned in the BEER thread if anyone is interested.

http://biodiesel.infopop.cc/groupee/...51/m/761605337