Biofuels industry needs government support

Government funding for Australia’s fledgling biofuels industry is vital to its long-term viability, a leading agricultural bank says. World agricultural banker Rabobank says in a report that a sustainable biofuel industry in Australia will depend on several factors but most important among them is continued government funding. Biofuels will only remain excise-free until 2011 under the government’s alternative-transport-fuels plan. “Ultimately, long-term government support in terms of policy to encourage both consumption and production increases is a critical issue, which must be addressed between proponents of the industry and government,” says author Ingrid Richardson. (September 13, 2006)