The Minister for Resources and Energy, Martin Ferguson AM MP, has launched the Australian Government's $15 million Second Generation Biofuels Research and Development Program.
Businesses and institutions researching second generation biofuels are now able to apply for grants of between $1 million and $5 million. Second generation biofuels use fuel stocks such as biomass and algae (rather than grain or other livestock feed) and will allow the industry to move beyond the 'food versus fuel' debate.
Speaking at Flinders University in Adelaide, Minister Ferguson said: "The Australian Government is committed to developing low emission technologies and alternative fuel supplies.
"This funding will importantly provide a boost to the biofuels industry and assist in the research and development of the next generation of biofuel technologies, which have the potential to be a cleaner burning alternative to petroleum products with lower CO2 emissions.
"The Gen 2 program is part of the Australian Government's broader commitments under the
$500 million Renewable Energy Fund and will match industry funding dollar for dollar."
Research funded through Gen 2 will be directed towards the development of sustainable biofuels technology which uses low-cost, non-food materials. This may include use of algae to produce biodiesel or cellulosics to produce ethanol.
Minister Ferguson said: "The food versus fuel debate has been well documented and it is essential that grant funding reaches projects which are sustainable.
"We must ensure that biofuel development does not compete with the traditional agricultural industry for land and resources, raising the price of groceries and livestock feeds.
"Developing commercially-viable and effective second generation technology will increase the sustainability of biofuel use."
The Gen 2 Program will support projects which promote cooperation between businesses, industry and research institutions to encourage increased knowledge sharing and skills development.
The Program will take applications until 30 January 2009. Program information, funding guidelines, and applications are available at www.ret.gov.au.
Media contact: Michael Bradley – 0420 371 744