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August 17, 2006Beattie promises alcohol for allAccording to this Australian article Peter Beattie has today promised to require all petroleum refiners in Queensland to produce only petrol with 5 percent ethanol. It's like Catch 22 - he can't make us buy it, but he can ensure it's the only product available. This has got to be one of the most ludicrous policies I have seen in a long time. I'm not exactly sure what percentage of the nation's petroleum is refined in Queensland, but if you assumed it was enough for the Queensland market where is all the ethanol going to come from? To put this in perspective. Beattie claims that it will involve consumption of 200 million litres a year of ethanol. But an Australian Parliamentary Library paper from 2003 says that Australia's total production is only 135 million litres a year. Where is the extra refining capacity, let alone supply capacity, going to come from? Are we going to import it from Brazil? Or is Beattie going to relax his tree-clearing legislation so that we can clear more land to grow sugar cane to produce it? And has anyone factored in how much water growing the sugar cane is going to take (just at a time when we've realised there's barely enough to go around)? And what about the flow-on effects for the price of products using sugar, and grain crops that can be substituted for it? Of course, he's likely to get away with this because the Oppposition still can't work out that elections are won by the party having the largest number of seats; and journalists are generally so dim, that asking really hard questions in a press conference when the media release in their hands is still warm from the photocopier is just a bit beyond them. And it is obviously targeted at buying off the Green vote, alienated by Beattie's need to build some dams to deal with the water shortages. Posted by Graham at August 17, 2006 10:46 PMComments
Couple of points: Hi, if this inane policy is targeted at the green vote he had better think again. from the NSW greens latest newsletter.. rising petrol prices have finally ignited a long-overdue public I think there is another couple of dynamics that have yet to have their presence felt. Firstly, the use of ethanol-blended petrol tends to lead to slightly increased fuel consumption, perhaps cancelling out the benefit in terms of $ per km. Second, a very large proportion of the private vehicle fleet is old - vehicles not designed for such blended fuels. A boon for mechanics perhaps? Also, where is the conversation about ethanol emissions from combustion engines. I am happy to be corrected, but it is my hazy understanding that emission from ethanol-based fuels are quite dangerous. Finally, by how much will the blending bring down fuel prices? I cannot it being anything substantial. Any reduction of less than 7-10 cents per litre would outweigh the benefits. I'm left with a nasty feeling that the ALP is selling us a pup. I mean, where is the debate about full production of true biofuels (diesel *and* petrol)? Posted by: Andrew at August 18, 2006 05:56 PMPost a comment
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