Biofuels in New South Wales

The New South Wales Government is ensuring that ethanol-blended petrol is becoming widely available, through a mandate requiring from 1 October 2007 that 2% of the total volume of petrol sold in NSW is ethanol.

This means that cheaper, cleaner and greener fuel is available at more petrol pumps in New South Wales.

Biofuels, such as ethanol, are good for the environment, create jobs in regional NSW, help farmers, and reduce our reliance on foreign fuel imports.

This does not mean that all fuel sold will contain ethanol, but provides you with a choice at the pump to fill up with E10 petrol, which contains a blend of 10% ethanol.

Under the NSW Government's 2% ethanol mandate, primary petrol wholesalers will need to ensure that ethanol makes up a minimum of 2% of the total volume of NSW sales.

Petrol companies are ramping up the availability of ethanol biofuels which means more ethanol-blended petrol is available at more NSW petrol pumps.

Most NSW cars that use ULP can safely use 10% ethanol-blended fuel (E10). Ordinary petrol will still be available for older cars, boats and other engines that are not able to use ethanol.

This 2% ethanol mandate was the NSW Government's first step towards a broader use of ethanol and other biofuels in NSW. 

A state-wide 2% average ethanol content was achieved in September 2008, less than 12 months after the commencement of the mandate. 

The NSW Government will now further increase the availability of biofuels by increasing the ethanol mandate and adding a new biodiesel mandate.

When amending legislation commences on 1 October 2009, it will:

• increase the volumetric ethanol mandate to 4% (from 1 January 2010) and later 6%, before requiring all regular grade unleaded petrol to become E10;
• introduce a volumetric biodiesel mandate, initially 2% (from 1 January 2010), increasing later to 5%;
• broaden the volumetric mandate obligations to apply to major retailers as well as primary wholesalers; and
• establish a sustainability standard for biofuels.

The legislation provides mechanisms for flexibility regarding implementation dates, which will primarily depend on the biofuels supply situation.

Premium unleaded petrol will still be available for older cars, boats and other engines that are not able to use ethanol.

Future developments.

The New South Wales Government will develop a 10-year biofuels strategy to build on the industry base established under the initial mandates, encouraging the development of second-generation technolgies and feedstocks that will enable the sustainable production of much greater volumes of biofuels.

Find out more about the NSW legislation and answers to common questions about biofuels.