**Check against delivery
Good morning ladies and gentlemen.
It gives me great pleasure to be with you today and to announce the successful applicants for the Australian Government's second generation Biofuels Research and Development program.
The Australian Government understands that Biofuels can play an important part in Australia's future fuel mix.
They can supplement and diversify fuel sources at a time when the world's oil supply is coming under pressure and when the value of Australia's petroleum imports is increasing.
With less than a decade of known oil reserves remaining, Australia is looking down the barrel of a $25 billion trade deficit in petroleum products by 2015, therefore progress with alternative fuels such as second generation biofuels is particularly important.
Second Generation Biofuels have the capacity to produce cleaner-burning fuel and importantly, reduce CO2 emissions.
Most importantly, the development of commercially-viable second generation technology will increase the sustainability of biofuels production and allow the industry to move beyond the food Vs fuel debate.
Second generation biofuels encompass a broad range of activities - from the development of new feedstocks through to new processing methods to derive fuel from agricultural wastes.
The Australian Government wants to support our best ideas in this field and through the funding I am announcing today, we will provide a significant boost to the development of this important industry.
This funding is part of the Australian Government's $4.5 billion Clean Energy Initiative.
I am pleased to say that my Department received 32 project proposals, amounting to a demand on the Gen 2 Grant funds of approximately $90 million.
Clearly the Government is not alone in its enthusiasm for second generation biofuels.
I commend all the applicants for their efforts, however we unable to fund all of these projects.
I would like to thank the members of the Technical Panel for the dedication and expertise provided in their assessment and selection of these projects.
I would particularly like to thank the Chair of the Technical Panel, Mr Martin Thomas, who is with us here today.
It is with great pleasure that I announce the successful recipients under the Gen 2 Program:
- The University of Melbourne ($1.2 million): to look at Biofuel from Micro algae involving the efficient separation, processing and utilisation of algal biomass.
The project is also supported by Bio Fuels Pty Ltd and will be located at Hazelwood Power Plant, Victoria.
- Algal Fuels Consortium ($2.7 million): The consortium is developing a pilot-scale second generation biorefinery for sustainable micro algal biofuels and value added products.
The participants are the South Australian Research and Development Institute (SARDI), Flinders University and CSIRO. The project is also supported by Sancon Inc and will be located at Torrens Island, South Australia.
- Curtin University of Technology ($2.5 million): to investigate the sustainable production of high quality second generation transport biofuels from Mallee biomass by pyrolysis and utilising the biorefinery concept.
The project is also supported by Spitfire Oil Pty Ltd and located here in Perth, Western Australia.
- Bureau of Sugar Experiment Stations (BSES) Limited ($1.3 million): BSES will be developing an optimised and sustainable sugarcane biomass input system for the production of second generation biofuels, located at Indooroopilly, Queensland. The project is also supported by CSIRO.
- Monash University ($1.4 million): The Monash University project will aim to develop a pyrolysis biorefinery supported by the Renewable Oil Corporation and located at Monash University, Victoria.
- Microbiogen Pty Ltd ($2.5 million): The project aims to produce commercial volumes of ethanol from bagasse using patented yeast strains. The project is located at Lane Cove, New South Wales.
- Licella Pty Ltd ($2.3 million): Licella will examine the commercial demonstration of Lignocellulosics to stable bio-crude, located at Somersby, New South Wales.
I would like to offer my sincere congratulations to all successful applicants.
The Australian Government hopes this program will provide an opportunity to develop and demonstrate this pioneering technology.
The quality of applications received demonstrates how well placed Australia is to build on our competitive advantages and develop these technologies which stand to both increase our energy security and deliver environmental benefit.
The Australian Government wishes you every success in your work developing this essential fuel alternative for the 21st century.