Biofuels, fuel security and what ethanol could do for Australia

In this episode of DBrief, Louise McGrath speaks with Ash Salardini, CEO of Australian Sugar Manufacturers, about the role biofuels - particularly ethanol - could play in strengthening Australia’s fuel security as the conflict in Iran continues to disrupt global supply.The conversation explores why ethanol is being raised again as a practical policy option, and how a national ethanol mandate could help cushion Australia against price shocks, supply disruptions and low fuel stock levels. Ash explains what has changed since earlier debates on ethanol, including vehicle compatibility, fuel standards and emissions performance, and why demand certainty is critical for attracting private investment.Louise and Ash discuss how a national mandate could be designed to mirror successful energy policy frameworks, where existing government programs align with this agenda, and where gaps remain. The episode also examines certification and integrity under the Guarantee of Origin scheme, the realities of feedstock supply, concerns about food versus fuel, and how sugar‑based biofuels could support longer‑term sovereign capability, regional development and the decarbonisation of harder‑to‑abate sectors such as aviation.Key takeawaysA national ethanol mandate could simultaneously improve fuel availability, reduce price volatility and lift Australia’s fuel reserve coverage.Australia already has sufficient ethanol production capacity to meet an initial national mandate, with scope to scale significantly over time.Past concerns about vehicle compatibility and fuel quality no longer apply to the modern vehicle fleet or current fuel standards.Demand certainty - rather than supply‑side subsidies - is the key constraint holding back investment in biofuel expansion.Current fuel security responses focus overwhelmingly on oil‑based fuels, despite ethanol being immediately available domestically.A credible Guarantee of Origin scheme is essential to support market confidence, investment and export credibility for biofuels.Biofuel growth can complement food production, particularly through the use of existing biomass rather than competing feedstocks.Ethanol offers a near‑term, cost‑effective pathway to emissions reduction, with longer‑term potential for aviation and maritime fuels.Contact the Industry Development & Policy team here.