The NSW Government has decided to continue suspension of the scheduled increase of the ethanol mandate while it consults with stakeholder groups in the biofuels industry to address issues of supply shortages.

 

The Biofuels Act 2007 currently requires that four per cent of NSW petrol sales be an ethanol blend. NSW is the only State with a mandated target.

 

Minster for Resources and Energy, Chris Hartcher said the legislated mandate - due to increase from four per cent to six per cent on 1 July – would be suspended for a period of three months while the Government considered the best way forward.

 

“The NSW Government supports the development of biofuels but we are conscious of the need to consult with all industry groups to provide a level of stability and certainty to the industry,” Mr Hartcher said.

 

A Legislative Review of the Biofuels Act has highlighted stakeholder concern with supply levels. At present all major resellers are failing to meet the current 4 per cent target, with nine resellers applying for exemptions due to constrained supply.

“The review has brought to our attention a number of issues which require greater examination and we will be moving quickly to review the Act’s objectives,” Mr Hartcher said.