**Check against delivery
Good morning ladies and gentlemen.
It's a pleasure to address the Biomass Energy Investors Workshop.
As Minister for Tourism, I urge those of you who came to Canberra to see as many of our national capital's attractions as you can during your stay.
Visiting the National Library, the National Museum, the Art Gallery, the Portrait Gallery and the Australian War Memorial will be time well spent.
We are here today to discuss the important role that biomass and biofuels can play in Australia's energy mix.
The Government recognises their potential and hopes to facilitate their greater deployment.
The need for biomass energy
The importance of sourcing energy from biomass is two-fold:
- To help in the transition to a low-carbon economy
- And enhance energy security through a broader range of fuels.
Planning for energy security is more complex than ever.
Large oil discoveries are becoming rarer and the impact of fluctuating oil prices is becoming greater.
Global instability means more countries are striving to be free from 'oil imports dependency'.
At the same time, global targets for reducing CO2 emissions demand innovative solutions to reduce greenhouse gas emissions while maintaining energy security.
It is especially important we have solutions which don't deprive people of their livelihoods.
Biomass-fired electricity and second-generation biofuels are two such solutions.
Already, bio-energy technologies account for the largest share of renewable energy technologies globally.
With its widespread use in developing countries, solid biomass is by far the largest renewable energy source.
It accounts for nearly 10 per cent of world total primary energy supply or about three-quarters of renewables supply.
This illustrates the importance of biomass to global energy security and the goal of lifting millions more people out of poverty.
So the Australian Government is working with you to enhance our energy security, while achieving climate objectives and maintaining economic prosperity.
Australia's biomass potential
Australia is well-placed to capitalise on the potential for biomass and bio-energy, including biofuels.
Australia is a good place to invest in bio-energy technologies:
- We have huge waste wood resources - up to 12 million tonnes a year
- There are vast amounts of agricultural waste, fire-damaged timber, sawdust from housing and industrial packaging - all of it looking for suitable disposal
- Australia has world-class expertise in bio-energy and research, backed up by scientific excellence in our universities and research organisations
- And we have an excellent environment for business to invest, proven ability to manage large-scale infrastructure projects and solid government backing for innovation.
- These attributes are further supported by the regulatory framework and Government support - particularly the 20 per-cent by 2020 expanded Renewable Energy Target and the Carbon Pollution Reduction scheme. Both of which should further the deployment of bioenergy.
Government support
Let me elaborate some more on Government support for bioenergy. This support comes in three parts:
- Tax benefits
- Direct support
- And market-based mechanisms
On tax, the main support for alternative fuels is the concessional excise arrangement which effectively makes all alternative fuels - including biofuels - excise-free until mid 2011.
The post-2011 arrangements will be announced following consideration of the Henry Tax Review.
On direct support, I recently announced seven successful applicants under the Second Generation Biofuels Program.
The Gen 2 program will provide $14 million to projects examining a range of biofuel feedstocks and technologies.
I have seen for myself the progress being made at Curtin University in Western Australia, and also at Licella's plant at Somersby in New South Wales.
The breadth of the research and the ambition of the teams involved is impressive.
On market-based mechanisms, the 20 per-cent by 2020 expanded Renewable Energy Target will drive investment in technologies such as biomass-fired electricity.
Since many bio-energy technologies are mature and market-ready, bio-energy is expected to do well under the expanded Renewable Energy Target.
The Carbon Pollution Reduction Scheme will further encourage industry to look for cleaner energy options.
Biofuels in the energy mix
This conference is a showcase for promising technologies.
I want to see technologies available here in Australia, and the package of measures I talked about will help that happen.
But in the broader debate about energy security, as we move to greater deployment of low emissions energy we need to also ensure that technologies being brought forward are viable and make economic sense.
The Australian Government will not pick winners, nor should we.
Government will encourage, fund, promote and legislate but ultimately the market will decide which sources of energy provide reliable, affordable and plentiful supplies.
Conclusion
Ladies and gentlemen, these are exciting times for bio-energy and biofuels.
The Australian Government is working hard to give this technology every opportunity to succeed in the market place.
We value the export opportunities from bio-energy and the jobs created - especially in rural areas.
More importantly, we value its contribution to energy security and prosperity both here and overseas.
Enjoy the conference and I wish you every success.
Thank you