Minute With The Mayor Mayor Ramon Jayo

Isn’t it interesting how things seem to coincide and seemingly come together in time. You will recall that last week I mentioned our planned delegation to Canberra to address the Federal politicians on matters important and critical to our region to enable our economic growth, one in particular being the emerging sustainable aviation fuel and renewable diesel supply chain. As one of Australia’s leading sugarcane regions, we can contribute feedstock and logistics to processing, refining, and export.

Unfortunately, I did not attend due to the flood threat to our district, but the delegation did meet and push the cause with a number of members, including the Minister for Renewable Energy, Chris Bowen. Feedback is that the Minister is keen on progressing the concept, and we will now wait and see what action is taken.

We are all looking closely at what effect the war on IRAN is having, or going to have, on our fuel supplies and, more immediately, on fuel prices. Prices in Ingham have already risen sharply which does not augur well. I read this morning that Australia is holding around 30 days of refined fuel supply, well below the International Energy Agency recommendation of at least ninety days. This apparently leaves Australia vulnerable to global supply chain disruptions, as appears to be presently occurring.

I can report that the Australian Sugar Manufacturers (ASM) is also calling on the Australian Government to introduce a strong national ethanol mandate to unlock the most affordable pathway to sustainable aviation fuel and biodiesel, while strengthening Australia’s sovereign fuel capacity. ASM states that a national mandate would provide the certainty needed to drive investment in domestic ethanol production and support the development of sustainable aviation fuel (SAF) and biodiesel. ASM has identified that a national ethanol mandate would provide certainty to unlock billions of dollars in private investment, deliver the lowest-cost carbon abatement in transport fuels, support the development of affordable sustainable aviation fuel and biodiesel, strengthen Australia’s fuel security and sovereign manufacturing capabilities, and create regional jobs and economic opportunities.

I believe it is becoming quite clear to us all that Australia is facing a clear choice: continue relying on imported fuels or build a domestic industry that delivers affordable emissions reductions and regional economic growth. A national ethanol mandate will transform Australia’s sugar manufacturing sector for generations, and we definitely need to start becoming much more vocal about same.

As you may or may not be aware, the Queensland State Government has over the past year been conducting an inquiry into the Queensland sugar industry bioenergy opportunities through the Queensland Primary Industries and Resources Committee. The committee recently had its final public hearing and, I understand, was told of the significant role that the sugar manufacturing sector can play in supporting Queensland’s renewable energy future, regional economic growth, and long-term energy security. That is, of course, significantly reliant on farmers continuing to provide the feedstock to enable manufacturing to occur.

What I am not hearing or seeing yet is how farmers are going to be brought in as an integral part of this process given the existing Cane Supply Arrangements in place where, effectively, farmers are only paid for crystal sugar and a little bit for other things like molasses, but definitely not renewable energy outputs.

The elephant in the room remains.

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