Alternative Fuels

Faux Green: Handouts for Toyota Little for Australian Renewable

12:13 PM, 16/6/2008 .. 0 comments .. Link

Yes that’s right slash the solar rebate and incentives to biofuel industries but throw cash at foreign companies that, in terms of energy conservation and emission reduction, produce mildly beneficial products.

What’s even more bizarre about the $70 million dollars worth of taxpayer funds that’s been handed to Toyota is the fact that they were going to build a plant to produce a hybrid version of the Camry in Australia anyway.

In terms of fuel savings and environmental friendliness there is a big argument as to whether the hybrid car really stacks up, and for many it just doesn’t. The new breed of diesels can be just as efficient and cheaper to buy.

Although that might be jumping over what Toyota has actually achieved. It’s not about how green or how economical, it’s the fact that Toyota has brought the concept of the electric car into main stream acceptance. Something GM couldn’t do back in the 90’s with the EV-1.

And there is nothing wrong with Toyota coming to Australia to build a hybrid car (or at least assemble one here), if, they can stand on there own two feet without taxpayer subsidies and tariff protection.

While there is a large emotional attachment to producing an ‘Australian’ car we also need to understand its true cost to the taxpayer. To face the facts we can simply take a look at the current wage rates in Australia compared to India or China. We don’t compete as a manufacturer and are never likely to. You may say but what about quality, well it’s probably time to look again.

Then we need to also remember that tariffs placed on imports also restrict our access to affordable vehicles and the latest technology. This is an important point, if cars were more affordable, we would more than likely update more often and benefit from new technology and from efficiency improvements.

The recent report from the productivity commission provides probably the best insight into the true cost of vehicle production and puts it into perspective just what it costs the taxpayer.

So where should resources go? In the renewable field there is lots of emerging technology in the field of alternative fuels and renewable energy sources. And much of it has received support from government. Unfortunately some renewable industries have lost support from government such as the slashing of the solar rebate and the total disinterest in biofuels, biomaterials and agriculture.

Then there is the 22 billion dollar slush fund for ‘infrastructure’, or in other words 22 billion to speed up the extraction and delivery of coal, gas and oil. Rudds Labor is starting to make Howards Liberals look like eco-hippies in suits.

So back to the question, where should investment go and my answer is - Agriculture. Yep, straight out of left field particularly with the current issues surrounding water supply.

And when you think agriculture and climate change and energy you think bio-fuels. Now, that’s had some bad press lately hasn’t it, relating to using food crops as fuel. Does it deserve it, probably not. In reality it’s probably not to much more than America bashing. We seem to live in an odd world of bagging someone to come to the rescue as apposed to the old way of begging…..

It really is a large debate that must consider a range of factors, including seemingly poor governance of the regions experiencing shortages, including one point that seems to be missed is the rising cost of energy causing the high price rises in food and in some cases causing food producers to not plant at all. So, if they where not producing bio-fuel, that helps to reduce the reliance on oil, what effect would it have on the cost of fuel to the food producer and to end product availability and pricing?

We also need to consider the science that’s leading towards biofuel that’s produced from non-food crops such as switchgrass, miscantha and jatropha with the last being highly drought resistant.

We also need to consider the science that’s producing fuel from agricultural waste product, be it from the production of corn, rice or sugar cane.

We also need to consider some farmers overseas are operating a ‘closed loop’ system where farms are self sufficient requiring very little input to output, producing beef cattle and bio-fuel, with manure powering the biofuel refinery and as a bi-product producing distillers grain that feeds the cattle.

We also need to consider the science that is producing bio-fuels from algae or if you like ‘pond scum’.

Then there are biomaterials, many large companies that were once dependent on petrochemicals for plastic production are shifting towards bioplastics.

That’s just the start of the new agri-tech revolution that’s coming.

Perhaps to some politicians farming and agriculture is boring and not a good fit with their ‘appear to be green’ agenda. Perhaps we also need to look at the lack of water infrastructure development by state governments that have led to farmers being starved of water by thirsty cities.

Perhaps we should be researching a way to engineer a solution to effectively drought proof and expand our farming land. At a time when agriculture is as important as ever we should look to fill the supply channels rather than cap their use.

Along with the re-establishing the value and importance of agriculture, there are also a wide range of alternative fuels that Australia could be developing for its transport needs to help keep Australia's energy security in check.

So, in ending, perhaps instead of floating around the world waving banners and dropping cash there is some real, productive and beneficial work that can be done on the home front. And there is no better time to get behind our traditional industries particularly agriculture and to not get left behind in the coming agri-tech boom..
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