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Australia: Palm oil furore could stymie green fuel plan

Source:  Copyright 2007, Sydney Morning Herald
Date:  October 11, 2007
Original URL: Status ONLINE


THE rush to replace carbon-emitting petroleum with "clean green" biofuels is threatening to stall in the face of rising food prices, Federal Government disincentives and growing opposition from environmental groups sounding the alarm about large-scale deforestation to support fuel crops.

Now a planned $30 million biodiesel plant in Port Botany is under attack by the Greens because it will use palm oil from Indonesia and Malaysia. Its future is up in the air as the developer, Natural Fuels Australia, decides whether it should go ahead. The chairman of the company, Barry Murphy, said yesterday that the Federal Government clean fuels grant did not in reality encourage the use of pure biodiesel from crops and therefore "makes the economics difficult". He also acknowledged the price of feedstock and the global issues around climate change and deforestation made the decision a tough one.

The Greens state MP Ian Cohen ...

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