MEDIA RELEASE: Australian Ethanol - Call for industry investment to safeguard supply and boost regional economies

MEDIA RELEASE 

Australian Ethanol: Call for industry investment to safeguard supply and boost regional economies

As supply lines from China reopen, Bioenergy Australia is calling on the federal government to support hand sanitiser manufacturing businesses to continue to buy Australian Ethanol, as the active ingredient in hand sanitiser and surface disinfectants, as cheaper imports enter the market again.

Former Liberal Party leader, economist and Bioenergy Chair, Dr John Hewson OM, said “At a time like this we need to focus on supporting our domestic industries. Ethanol is part of the emerging biofuel industry in our country, which can provide large growth areas for jobs in regional Australia moving forward. The Australian Ethanol producers were here when ethanol supply from China shut down for 40 days and we want them to be here now and even stronger into the future, especially in the face of potential future waves of the virus that may again disrupt global supply chains. Otherwise we’re vulnerable. It’s a huge risk. 

As a country this can be a defining moment in our future. Do we make a move to safeguard supply of critical need products by investing in, and supporting, local industries like Australian Ethanol, which also deliver economic benefits and jobs to regional economies, at a time when it’s sorely needed  - or do we return to our reliance on importation?” said Hewson.

Bioenergy Australia CEO Shahana McKenzie, said “There was an estimated 600% surge 
in demand for ethanol during the first stages of the crisis when Chinese and US supply chains were shutdown. The Australian Ethanol industry - with only three major facilities in the country – made a colossal pivot to rapidly scale up and adapt current ethanol production help fuel the fight against COVID-19 and protect lives.”

Creation and uses of ethanol are not widely understood, and have led to some confusion and concern as demand skyrocketed due to the COVID-19 crisis.

McKenzie said, “Ethanol has different forms and uses in production. Beverage (alcohol grade, pharmaceutical grade (sanitisation products), personal care, industrial grade (detergents) and fuel grade (E10 and E85). The production of all of these grades is reliant on a stable industry and currently it is the E10 fuel mandates in New South Wales and Queensland, which ensure domestic supply is protected in the sector.”

Without these mandates, Australia would’ve been entirely reliant on importing ethanol from China, which had an export shutdown for 40 days straight, and the USA.

Hewson explained protecting Australian lives and rebuilding the economy are two core focuses for the federal government as we emerge from the public health crisis. He said investing in Australian biofuels will support both of these prioritises, plus give us additional security of fuel supply, which was also voiced as a concern with global export shutdowns. 

Bioenergy Australia is urging government, industry and business to put the issue front and centre and support local producers, such as family-owned Australian Manildra Group, who is making substantial investments to expand operations to be able produce more ethanol for Australia’s needs.

Manildra Group have just announced the expansion of their state-of-the-art distillery, to produce an additional 90 million litres of ethanol for pharmaceutical and beverage industries.

Manildra Group Managing Director John Honan, explained their Nowra-based distillery has been operating around-the-clock to increase production of pharmaceutical-grade ethanol, the active ingredient in hand sanitisers and surface disinfectants.

“The expansion of the distillery will provide 100+ jobs during construction as well as provide additional ongoing employment opportunities at Manildra Group’s ethanol plant. This further investment will provide a much-needed boost to the community of Nowra and the NSW economy,” said Mr Honan.

The pandemic has highlighted the vulnerability of Australia on global supply chains with shortages on other essential ingredients and packaging, as reported by hygiene industry body, Accord, in their latest survey findings.

“This will not be the last time that ethanol demand is critically high. It’s important we translate the learnings we’ve had as a country during the COVID-19 crisis now, and have these critical conversations on how we can secure vital supplies to protect Australians.” concluded McKenzie. 

-ENDS-
 
All media enquiries: Lauren Sinfield  | laurens@thebraveryishere.com | 0431 012 018
 
Available for Interview:
●    Shahana McKenzie, CEO, Bioenergy Australia
●    John Hewson, Chair, Bioenergy Australia
●    John Honan, Manildra Group Managing Director

About Bioenergy Australia 
Bioenergy Australia is committed to accelerating Australia’s bioeconomy. Our mission is to foster the bioenergy sector to generate jobs, secure investment, maximise the value of local resources, minimise waste and environmental impact, and develop and promote national bioenergy expertise into international markets.
Australia lags behind the world when it comes to bioenergy, and we aim to change that. We empower, share knowledge, and connect Australian bioenergy producers, investors, researchers, and users to make Australia’s bioeconomy world-class. http://www.bioenergyaustralia.org.au

Ethanol
Ethanol is a form of bioenergy made by the fermentation of biomass, using glucose derived from sugars (for example from sugar cane, or molasses), starch (corn, wheat and grains) or cellulose (forest products). Ethanol is a low emission, biodegradable, non-toxic alcohol distilled from plant residues. It is used for a range of things including fuel such as e10 and e85, hand sanitisers and disinfectants, alcohol such as gin and vodka, as well as cosmetics products. It is an essential ingredient in many products across Australia.
The benefits of bioenergy are multi-faceted and cover the following four key areas:
●    Enhanced energy security through domestic production of biofuels and diversification of electricity and heat fuel sources
●    Greater utilisation of waste streams through higher recycling and reuse of waste from agricultural, industrial, commercial and domestic activities
●    Regional employment, investment and economic development as the feedstock used for bioenergy often stems from rural and agricultural activities, through new or existing manufacturing processes
●    Reduction in greenhouse gas emissions as sustainably sourced biomass is carbon neutral