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Biofuels made from waste crops could be in commercial production in Australia within five years, according to one research body.
The Commonwealth Scientific and Research Organisation (CSIRO) says that if the right amount of waste crops were available, Australia would be able to commercialise the production of second-generation biofuels.
Currently in Australia, ethanol and biodiesel takes a back seat to food production from corn and sugar crops, but the utilisation of waste materials such as timber mill offcuts or even newspapers is set to change this.
Victoria Haritos, researcher for CSIRO, told abc.net.au: "Companies which are working at the pilot and demonstration scale in the US are talking at costs of about 26 cents a litre.
"At the moment, the production costs are competitive with a $40 to $60 a barrel [price], and of course, our crude oil is a lot higher than that."
Last month, APAC Biofuel Consultants said that the biofuels sector contributes 3,000 barrels per day to the Australian transport fuel supply.
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