Biofuels discussed as potential renewable energy source
Australia is not alone in its efforts to find renewable sources of energy, especially as developed nations find themselves under pressure to cut carbon emissions.
It's therefore not surprising that alternative forms of energy are being considered all the time - and the latest to be given consideration are biofuels.
The Clean Energy Finance Corporation (CEFC) explained how the emerging industry has the potential to make a valuable contribution to improving national efficiency.
Speaking at the Biofuels Association of Australia's conference in Sydney on October 31, CEFC Chief Investment Officer Ted Dow explained how biofuel projects will need the right backing.
"Bioenergy makes up about 10 per cent – or nearly $100 million, of the CEFC's current total portfolio, but to date this investment has mainly focused on waste-to-energy and biogas," Mr Dow noted.
Biofuels are created from plant material, therefore reducing the need to rely on energy sources that are hazardous to the environment.
They have a particularly strong following because experts believe biofuels could offer an alternative method of supplying electricity and gas that doesn't lead to a rise in greenhouse gas emissions.
At present, the CEFC is able to provide funding for a number of biofuel initiatives, and there are already high hopes that this will only continue to rise over the next 10 years.
Mr Dow highlighted how the right policies will need to be put in place to encourage further investment in the sector and convince financiers that it is the right project to invest in.
The Biofuels Association of Australia explains how a growing number of companies across the country have already made the switch to biodiesel for its environmental benefits.
It is estimated that Australia has the ability to create nine times the amount of biodiesel that was consumed in 2007, with the potential for this figure to increase even more.
Posted by Richard West