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America: Caltex Australia CEO urges more state funding for biofuel sector

https://www.chemnet.com   Jul 30,2010
The government is not investing heavily enough in the development of
biofuels, the CEO of Caltex Australia, the country's largest refiner, said
Thursday.


"Biofuels and other alternative fuels can be a significant part of
Australia's future fuel mix but policymakers need to put in place the right
measures to allow the potential of these fuels to be realized," Caltex
Managing Director and CEO Julian Segal said in a speech to the American
Chamber of Commerce in Sydney.


"It does seem there is inadequate funding of biofuels R&D and industry
development. We need an energy white paper that addresses the energy security
and climate change challenges facing Australia and the need for renewable and
alternative liquid fuels, particularly biofuels," he said.


Segal also said that the "major policy question" was whether to rely
solely on markets to meet transport fuel demand or whether governments should
intervene to regulate or encourage the development of alternative fuels. There
was no "single solution" to meeting the fuel requirements of the country's
transport sector, he added.


"A portfolio of conventional and alternative fuels including biofuels
will be required in the future," he said.


"Petrol and diesel will remain important fuels for passenger vehicles for
many years, including as part of biofuels blends and in hybrid vehicles, and
growth in commercial diesel and jet fuel will underpin Caltex refinery output
and profitability," he added.


But calls for a carbon tax in the country would have "very little impact"
on fuel consumption, and therefore little impact on reducing emissions, he
said. "Regulation and incentives are more effective than carbon prices for
cutting transport emissions," he said.


Australia should have targets for light vehicle greenhouse gas emissions
that are set after talking to manufacturers, he said, and suggested that
financial incentives be offered to consumers to buy lower-emission vehicles.


"A carbon tax would create the same problems for internationally
competitive industries like oil refining as the CPRS [Carbon Pollution
Reduction Scheme, a carbon trading scheme shelved by the Australian government
in April until at least 2013], but with less ability to provide an appropriate
assistance mechanism," he added.


Caltex in June forecast its production of gasoline, diesel and jet fuel
for the first half of 2010 at 4.4 billion liters, down from 5.1 billion liters
in the same period of 2009.


The company operates two refineries, a 124,500 b/d plant at Kurnell in
Sydney and a 105,500 b/d facility at Lytton in Brisbane. It is 50% owned by US
giant Chevron, with the remaining 50% held by the public and traded on the
Australian Securities Exchange.
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