Australia's Fuel Crisis: Experts Question Politicians' Ethanol and Coal Solutions
In response to Australia's escalating fuel crisis, politicians have floated various ideas, including greater ethanol use and coal-to-liquid fuel production. However, experts argue these proposals do little to address the core issue: reducing fossil fuel dependence and cutting transport emissions.
Coal-to-Liquid Fuel: A Costly and High-Emission Proposal
Andrew Hastie, the opposition spokesperson for sovereign capability, advocates for producing liquid fuels from coal, citing Australia's abundant coal reserves. He suggests this could enhance energy security during crises or conflicts.
Michael Brear, a professor of mechanical engineering at the University of Melbourne, explains that the Fischer-Tropsch process, developed in 1920s Germany and used in apartheid-era South Africa, converts coal into liquid fuels. While technically feasible, Brear emphasizes it is not a practical fix.
Establishing such an industry would be massive and time-consuming, with life cycle emissions potentially doubling those of conventional fuels. Economically, selling coal directly is more profitable than converting it into fuel that competes with crude oil.
Fuel Excise Cut: Subsidizing Driving Over Sustainable Transport
Prime Minister Anthony Albanese announced a temporary halving of the fuel excise, reducing costs by 26.3 cents per litre. He framed this as relief for Australians under pressure while encouraging public transport use.
Jago Dodson, an urban policy researcher at RMIT University, criticizes this move. Australia already has one of the world's lowest fuel excise rates, and cutting it further subsidizes driving, discouraging alternatives like public transport, walking, or cycling.
Dodson notes that higher excise rates in other countries foster greater resilience to fuel price shocks by promoting sustainable transport. Instead of broad cuts, he recommends targeted rebates for essential services like emergency responders or food delivery freight.
Ethanol Expansion: Limited Impact and Technical Hurdles
Nationals senator Bridget McKenzie and motoring groups like the NRMA promote increased ethanol use, with E10 blends containing up to 10% ethanol. Peter Khoury of the NRMA argues this could ease supply chain pressures.
Currently, ethanol accounts for only 0.2% of Australia's oil consumption. While countries like Brazil and the U.S. use flex fuel vehicles running on high ethanol blends, Australia's vehicles are mostly limited to 10% ethanol.
Brear points out that ethanol has lower energy content than petrol, and higher blends require engine reconfigurations to avoid damage. Australia's two ethanol refineries in Queensland and New South Wales are insufficient to displace significant petrol consumption, making this no quick fix.
Although ethanol from sources like Brazilian sugar cane can have low emissions, Brear highlights better short-term solutions: shifting to electric or hybrid vehicles, promoting carpooling, and investing in alternative transport modes.
Conclusion: A Call for Fossil Fuel Independence
Experts unanimously urge Australia to prioritize reducing fossil fuel reliance through sustainable transport and clean energy, rather than temporary measures that could increase emissions and delay progress on climate goals.



