Australia urged to swap diesel for electric buses as fuel costs soar. "Electric buses are just 1% of the Australian fleet compared with 80% in urban China, a quarter in the Netherlands and 12% in the UK"

 

Electric buses charge at the Brookvale depot in Sydney. Australia’s bus fleet is dependent on diesel but most states and territories have transition targets. Photograph: NSW government

 

 by  Petra Stock

 Electric buses are just 1% of the Australian fleet compared with 80% in urban China, a quarter in the Netherlands and 12% in the UK

 

As diesel climbs past $3 a litre amid fuel security concerns, transport advocates are calling for the rollout of electric buses across Australia to be prioritised.

In Australia, just 1% of buses are electric, compared with 80% of the urban fleet in China, a quarter in the Netherlands and 12% in the UK.

Metro trams and trains mostly run on electricity, while buses – a core part of Australia’s public transport system – remain highly dependent on diesel, consuming about 530m litres a year.

 

Industry body the Bus Industry Confederation wants buses to be prioritised in fuel security planning.

“Buses carry more than half of Australia’s public transport passengers,” the confederation’s executive director, Varenya Mohan‑Ram, said. “Fuel security is not just an operational matter. It is a matter of social equity and community resilience.

“We’re taking kids to school, we’re getting people to work.

“We are the lifeblood of regional Australia, in terms of keeping people connected.

“We just don’t have enough electric buses to carry Australians every day.”

In Australia, nearly 42,800 diesel buses were registered in 2025, compared with 629 that were battery electric – about 1% of the heavy bus fleet – according to government data

 

Most states and territories have targets to transition their fleets. Canberra and greater Sydney will be fully electric by 2040. E-buses already make up about 24% of the ACT’s fleet.

The ACT transport minister, Chris Steel, said: “Each electric bus is powered by 100% renewable electricity produced in Australia, they are cheaper to operate and not reliant on foreign fuels.”

South Australia will hit 81 e-buses this year – about 8% of the fleet – while Western Australia rolled out its 100th, and all new buses bought in Victoria are electric.

An electric bus at a charging depot in Melbourne. Rising fuel prices and uncertainty about supply make e-buses an attractive option, experts say. Photograph: James Ross/AAP

“E-buses are by far the most impactful way to cut emissions from public transport,” said Cameron Rimington, a senior policy officer at the Electric Vehicle Council.

“The benefits of electric buses aren’t contained to carbon emissions.

“Every bus running on Australian-made electricity is a bus that isn’t dependent on the strait of Hormuz, isn’t spewing exhaust into our communities, isn’t contributing to lung cancer or childhood asthma, and they’re so much quieter – for commuters and communities alike.”

Helen Rowe, the transport lead at Climateworks Centre, said public transport was a critical service and buses running on electricity were resilient against fuel shocks.

As well as buying vehicles, governments needed to plan for charging infrastructure, she said. In Victoria, bus company Kinetic recently opened a purpose-built depot with overhead charging infrastructure at Preston, in Melbourne’s north, while New South Wales has completed the first of 11 planned electric depot conversions.

 

Australia has been slower than other countries to get moving but the current crisis, rising fuel prices and uncertainty about supply could change the cost-benefit calculation, making e-buses a more attractive option, RMIT University’s Prof Jago Dodson said.

“From a simple security point of view, there’s probably a premium to be paid – to know that no matter what happens outside of Australia, we can still run our bus fleets on electricity,” he said.

Buses were also flexible, providing a key opportunity to respond to the crisis, Dodson said. They filled crucial gaps between fixed-line services and could be rolled out to meet demand and improve coverage in areas that are not currently well-serviced by public transport.

“It’s hard to roll out a rail line quickly,” he said.

Communities in Melbourne’s west have been campaigning for better bus access and services for years. They want winding and convoluted routes converted to a fast and efficient grid better able to serve local needs such as getting to the shops, school or train station.

Elyse Cunningham, the sustainable cities community organiser at Friends of the Earth Melbourne, said a lot of people drive simply because there was no other option.

 “We know the government needs to make public transport more accessible as fuel prices go up,” she said. “Buses are the fastest and the cheapest public transport solution that the government can provide.”

 

Service improvements could be “life-changing” for people in the west, she said, including many on low incomes or migrant families. The switch to electric would be a bonus, making for a quieter and smoother ride.

A community-run e-bus pilot in Gippsland, Victoria, shows what could be possible, even in regional areas. Since 2024, two mini e-buses – nicknamed Sandy and Sunny – have been providing inclusive, local transport for hundreds of passengers in a region where the ability to travel depends on owning a car.

The volunteer-run service improved wellbeing by reducing social isolation, La Trobe University’s Dr Magda Szypielewicz said.

For Dodson, the fuel crisis provided additional impetus for change, on top of the need to transition to zero carbon transport.

“Let’s hope that we can learn some lessons from this time around,” he said. “Actually use this to recognise that we do need to change and that the security of our transport systems is a core national security question.”

Day and night, there’s no relief: five ways this heatwave is one of Australia’s worst on record

 

It’s hard to stay cool. A tennis fan stands in front of a mist sprayer during the Australian Open Grand Slam tennis tournament in Melbourne. Photograph: Mast Irham/EPA

 Soaring temperatures, heat at altitude and hot summer nights combine to create one of south-eastern Australia’s ‘most significant’ heatwaves

by  Petra Stock

 

Heatwaves and hot days during an Australian summer may seem unremarkable. Days spent at the beach, sunburn and mosquitoes are part of the national psyche, along with outback pubs serving crisp lager as relief from searing afternoon heat.

But when the opal mining town of Andamooka (population 262) in the far north of South Australia reached 50 degrees on Thursday, it was only the eighth time in recorded history anywhere in Australia.

It was also the highest temperature recorded so far in what meteorologists have dubbed a “dome of heat” that began with exceptional temperatures in the west and moved into south-eastern Australia, where it still lingers. With no cold front to clear it out, the heat had “nowhere to go” – trapped by a blocking high in the Tasman and remnants of ex-tropical cyclone Luana in Western Australia.

 It’s difficult to compare one heatwave with another – this one came hot on the heels of one earlier in January, which scientists say was made five times more likely by global heating. During that event the fires that ignited across Victoria burnt 435,000 hectares of land (1.1m acres), and killed thousands of flying foxes in the worst mass fauna mortality event since the Black Summer of 2019–20.

 But Bureau of Meteorology senior climatologist Dr Simon Grainger says the latest heatwave is worse. For south-east Australia, it is among “the most significant we’ve ever seen”, he says, for its intensity, duration, temperatures and for the length of time the heat has remained above certain thresholds – comparable to January 2009 and January 1939.

 

Temperature records tumble

About 50 weather stations – mostly scattered across western New South Wales, western Victoria and eastern South Australia – have recorded their highest temperatures, Grainger says.

Victoria set a state all-time record of 48.9C on Tuesday in the Mallee towns of Hopetoun and Walpeup. On the same day, just over the border, the village of Pooncarie hit 49.7C, equalling the second highest temperature recorded in NSW.

Ski fields hotter than 30C

In Australia’s alps, where an average January day might be expected to reach 18C, temperatures climbed above 30C for the first time.

On 28 January, the ski town of Falls Creek recorded 30.5C, and Perisher Valley in NSW reached 30.8C – records for both places. “Those are pretty remarkable temperatures,” Grainger says.

In comparison, on the same day, Melbourne was 23.6C, and Sydney 28.5C, he says. “We were seeing higher temperatures 1,700 metres above sea level than we were [experiencing] down in Melbourne and Sydney at sea level.”

It’s one way to cool down: South Australians took to the coast for some respite. Photograph: Amer Ghazzal/Shutterstock

Hot summer nights hard to bear

Not surprisingly, during such events, the spotlight falls on record breaking heat recorded during the day. But overnight temperatures can be even more damaging.

On Monday in Adelaide, people craving relief after the mercury hit 44.7C – the city’s hottest day since 2019 – had to sweat through their hottest night since records began, with temperatures dipping to only 34.1C – about 18C above average – before quickly rising back above 40.

Dozens of inland towns and cities across South Australia, Victoria and NSW have faced five days or more above 40C. In some places, such as Albury in NSW, the heat might last for a week.

Graeme McCrabb, from the western NSW town of Menindee where temperatures reached 49.1C on Tuesday, says the heat left everyone ducking for cover. “They get off the streets, get inside and in front of air con.”

Towns including Maree in South Australia, and Wilcannia and White cliffs in NSW, sweated through three consecutive days of at least 48C, Grainger says. “For New South Wales, that’s never been seen before.”

Such prolonged heat “becomes really hard to bear, because people’s reserves just get worn down,” says A/ Prof Mark Putland, the director of emergency medicine at Royal Melbourne hospital.

“People’s houses just heat up. It gets difficult when it doesn’t cool down at night and people don’t get any relief.”

Bushfires continue across Victoria as the state experiences some of its hottest weather on record. Photograph: Michael Currie/EPA

Hospital admissions soar

Extreme heat is the most common cause of weather-related hospitalisations in Australia, killing more people than all other natural hazards combined. Stifling conditions, and sleep-less nights can be a deadly combination.

“Even while you’re asleep, extreme overnight heat can be dangerous,” warns Dr Caroline McElnay, Victoria’s chief health officer. “When temperatures stay high overnight, your body can struggle to cool down, increasing the risk of heat stress or more dangerous heatstroke.”

It’s still too early to know the full extent of the health affects, but heat-related admissions to emergency departments in Adelaide have tripled compared with January 2025, based on preliminary data.

In Melbourne, authorities issued air quality alerts warning people to stay indoors after smoke from fires burning in the Otways had drifted into the city.

Play continues at the tennis

Amid dire forecasts and heat health warnings, some of the country’s biggest sporting events carried on.

The Australian Open tennis went ahead, despite raised eyebrows, under extreme heat protocols. On the worst days, play on the outer courts was suspended and thousands of fans stayed away, which could cost the tournament an estimated $1m in lower-than-expected ticket, food and beverage revenue. Some are wondering how long it can remain feasible to hold the event outdoors in January as global heating continues to intensify.

Other events have made more substantial changes. The Tour Down Under cycling had been scheduled to traverse its most demanding stage at Willunga Hill, south of Adelaide, as the city was forecast to hit 42C, but the extreme heat and fires prompted organisers to make a last minute change to the route.

Meteorologists expect the heatwave to finally clear the country on Sunday, just as a new month begins. But hotter-than-average days and nights are likely to continue into autumn, according to the latest long-range forecast.

With additional reporting by Melissa Davey and Lisa Cox

More than 40% of electricity used in Australia’s main power grid at start of year was renewable

 

Electricity was up 16% from rooftop solar panels, 18% from windfarms and 10% from large solar farms. Photograph: Aston Brown/The Guardian

 Data suggests pollution from energy is falling again after previously stalling, but experts say faster growth needed to achieve Labor goal of 82% renewable electricity by 2030

by  Adam Morton

 

Renewable energy generation rose substantially in Australia’s main power grid over the past year, producing 43% of electricity used across the five eastern states and the ACT between January and March.

The increase – from 39% last year – came as generation from black and brown coal-fired power plants fell to its lowest level on record for the first quarter, in part due to ageing stations being unavailable due to outages. Gas-fired electricity generation was also down.

The Australian Energy Market Operator said the shift from fossil fuels to zero emissions sources drove a 5.1% drop in greenhouse gas emissions from electricity on the east coast.

 

Electricity was up 16% from rooftop solar panels, 18% from windfarms and 10% from large solar farms. Output from battery storage surged 86% as several large batteries were connected to the grid.

Total demand for electricity hit a new record for the quarter, mainly due to people in Victoria and South Australia using air conditioners more. But demand for electricity from big generators and farms fell slightly as rooftop solar continued to play a larger role. More than 4m homes across the country have solar systems.

The data suggests that a recent pause in the expansion of large-scale renewable energy may be over, and that a stalled long-term decline in climate pollution from the electricity sector may have resumed. Experts said growth would need to accelerate to push the country towards the Albanese government’s goal of 82% of electricity coming from renewables by 2030.

 Average wholesale electricity prices were down 6% from the final quarter last year, but still 9% higher than the first quarter of 2024. The year-on-year increase was mainly driven by a big jump in wholesale prices in Tasmania, where the cost of hydro generation surged.

 

Average prices across the mainland eastern states varied, but fell overall by 2.5%. A hike in the cost of coal and hydro energy was mostly offset by the increased use of cheap solar and wind.

Stephanie Bashir, the chief executive of Nexa Advisory, said renewable generation and batteries were having “a positive impact on the system dynamics, wholesale prices and emissions reductions”.

“That’s good for power security, reliability, and affordability,” she said. “What we need right now from the majority-led Albanese government is ambition to accelerate this momentum.

“Transmission lines remain the missing link in the transition – we must unblock progress. Regional Australia matters … we need to ensure we are supporting our regions to reap the benefits and bringing them with us on the journey. Do this and we can keep the lights on while getting on with the ultimate objective of becoming a renewable energy superpower.”

The Climate Council’s Greg Bourne said the data showed “power use is increasing and renewables are meeting the challenge”.

“Renewables will keep breaking records as Australia’s wholesale energy becomes cleaner, more affordable, and more reliable,” he said.

 

Building capacity

The Albanese government won office in 2022 assuming that solar and wind developers would continue to build rapidly as long as authorities “rewired the nation” through a $20bn commitment to build transmission lines and interstate connections required to harness clean energy.

 

By November 2023 it acknowledged this was not the case as investment in major developments dried up, and the climate change and energy minister, Chris Bowen, announced a large expansion of a taxpayer-underwriting program – known as the capacity investment scheme – to meet the government’s 82% renewable energy goal.

He said Labor would underwrite 23 gigawatts of new solar and windfarms and 9GW of new storage between 2024 and 2027. Fossil fuel energy was not eligible.

The government commitment is to guarantee minimum revenue for developers for the electricity they generate. Taxpayers will pay the difference if the commercial return falls below this rate. Auctions for underwriting contracts are held every six months.

The capacity investment scheme was not initially enshrined in legislation, but became law in February after a request from the Greens in return for support for an unrelated bill.

Johanna Bowyer, an analyst with the Institute for Energy Economics and Financial Analysis, said the rising renewable energy contribution, particularly when the sun is high in the middle of the day, meant wholesale electricity prices were zero or negative 18% of the time.

She said large-scale batteries now earned 88% of their revenue by buying and storing cheap solar and wind energy during the day and selling it when prices were higher in the evening. The remaining 12% of revenue was earned by providing the frequency needed to stabilise the grid.

 

Ningaloo and Great Barrier Reef hit by ‘profoundly distressing’ simultaneous coral bleaching events

 Footage shows coral bleaching on Ningaloo reef as Great Barrier Reef hit at the same time – video

 Scientists say widespread damage to both world heritage-listed reefs is ‘heartbreaking’ as WA reef accumulates highest amount of heat stress on record

 Graham Readfearn

Great Barrier Reef

 Ningaloo
 

 

Australia’s two world heritage-listed reefs – Ningaloo on the west coast and the Great Barrier Reef on the east – have been hit simultaneously by coral bleaching that reef experts have called “heartbreaking” and “a profoundly distressing moment”.

Teams of scientists on both coasts have been monitoring and tracking the heat stress and bleaching extending across thousands of kilometres of marine habitat, which is likely to have been driven by global heating.

 

On the Great Barrier Reef, bleaching is being detected from around Townsville to the tip of Cape York, a distance of about 1,000km.

On Western Australia’s famous Ningaloo reef, waters have accumulated the highest amount of heat stress on record during an extended marine heatwave that has hit coral reefs all along the state’s vast coastline.

Paul Gamblin, the chief executive of the Australian Marine Conservation Society, said history would “record this profoundly distressing moment” when two world famous reefs both suffered widespread damage at the same time.

Corals begin to bleach at about 4DHW, and 8DHW can kill heat-sensitive corals. Scientists say levels up to 16DHWs have been detected on the Ningaloo coast. Photograph: David Juszkiewicz/Curtin University

Dr Zoe Richards, an associate professor and coral scientist at Curtin University, spent 10 days monitoring the health of Ningaloo reefs and the neighbouring Exmouth Gulf earlier this month.

She said in shallower areas known for their clear waters, which are popular with tourists, she had seen up to 90% of corals bleached and evidence of corals dying. Even slow-growing corals that were hundreds of years old were bleaching, she said.

Ningaloo last experienced widespread bleaching only three years ago.

 

The WA government, which is coordinating monitoring across reefs there, said bleaching had also been reported at Kimberley, Ashmore Reef, Rowley Shoals, Barrow Island, Dampier Archipelago, inshore Pilbara and Exmouth Gulf.

Richards said: “This isn’t isolated to Ningaloo – this is happening across the entire north-west shelf. There has never been this scale of impacts in WA. I am not aware of this ever happening before. Climate change has definitely caught up with the reefs in WA.”

Corals lose the algae that give them their colour and most of their nutrients if ocean waters get too warm. If bleaching is not severe, corals can recover, but studies show they are less able to reproduce and are more susceptible to disease.

Coral reef experts use a metric known as degree heating weeks (DHW) to show how much heat corals have accumulated. Generally, corals begin to bleach at about 4DHW, and 8DHW can kill heat-sensitive corals.

Dr Jessica Benthuysen, an oceanographer at the Australian Institute of Marine Science (Aims), first saw signs of heat accumulating in WA last August. By the end of December, she said, some areas had sea surface temperatures 4C hotter than normal.

Benthuysen said levels up to 16DHWs had been detected on the Ningaloo coast, which were the highest on record.

Bleaching at Lakeside Reef Front, Ningaloo. Paul Gamblin of the AMCS says scientists have warned of widespread damage from underwater heatwaves and cyclones to both reefs ‘for decades’. Photograph: Zoe Richards/Curtin University

Coral bleaching at Mesa Back Reef at Ningaloo in WA. Photograph: Chris Fulton/Australian Institute of Marine Science

The US government’s Coral Reef Watch says DHWs between 12 and 16 are enough to cause coral death across multiple species.

The federal government’s Great Barrier Reef Marine Park Authority has coordinated monitoring flights over northern reefs, finding low to high levels of bleaching on most reefs. Underwater checks found bleaching at 24 of 30 reefs surveyed.

Bleaching was worse farther north – there is no concern for reefs in the park’s southern section.

Last summer was the worst bleaching event on record for the reef and the fifth major outbreak in eight years, hitting all across the marine park.

Dr Neal Cantin, a coral reef biologist at Aims who was on the monitoring flights, said bleaching was generally worse closer to shore but there was “high to medium” bleaching on reefs from Cairns to the far north. He said in the far north, heat stress was between six and 13DHWs, which was “capable of causing mortality”.

Dr Roger Beeden, the chief scientist at the authority, said detailed analysis of the data from the flights was still being analysed, but he said the lack of recovery time for corals between major events was worrying.

“It’s the frequency as well as the severity that makes us most concerned,” he said.

Dr Emily Howells, a coral scientist from Southern Cross University who has been at the Australian Museum’s research station on Lizard island since February, said this was now the sixth summer in a row that bleaching had been seen there.

The island, in the north of the reef, was badly hit by bleaching last summer and scientists at Aims who visited in subsequent months said the area had lost one-third of its live corals due to the heat.

Howells said there was less coral mortality this year, “but that’s because a lot of the sensitive corals died last summer”.

“There just isn’t enough opportunity for these coral communities to bounce back. It’s heartbreaking,” she said.

“We’re making it more and more challenging for the corals. The solution is having stronger action on climate change. The longer we wait, the worse it will get.”

 

Northern parts of the Great Barrier Reef have also been heavily affected by flooding from torrential rains. James Cook University’s TropWATER group has recorded flood waters carrying sediments and nutrients in a plume across 700km of the coast and extending as far as 100km offshore.

Jane Waterhouse, a reef water quality expert at TropWATER, said major flood events appeared to be happening more often and flood plumes were reaching farther offshore.

“River discharge carries pollutants, sediments and nutrients,” she said. “You get muddy water that cuts the light that seagrass and corals need to grow, and that nutrient also allows algae to grow.”

Gamblin said the widespread damage from underwater heatwaves and cyclones to both reefs was “what our world-renowned scientists have been warning us about for decades”.

He said fossil fuel companies were “doubling down” to get more mega projects running, pointing to areas around Scott Reef in WA being targeted for expansion by Woodside.

He said: “More mega polluting projects up at places like Scott Reef will make a tragic situation worse. What will our children say to us?”

 

 

Australia sweats through hottest August on record with temperatures 3C above average

Crowds on Sydney's Bondi beach beat the heat on the last day of winter 2024. BoM data showed average temperatures across Australia in August were 3.03C above the long-term average. Photograph: David Gray/AFP/Getty Images
 

The 2024 winter was the second hottest on record since weather data collection began in 1910

 

Australia recorded its hottest August on record, with the national temperature 3C above average, as September kicked off with total fire bans in parts of New South Wales on Monday.

Bureau of Meteorology data showed average temperatures across the nation in August were 3.03C above the long-term average, easily beating the previous 2.56C record set in 2009.

The 2024 winter also ranked as the second hottest on record going back to 1910, the data showed, coming in at 1.48C above average. The hottest winter on record was 2023 at 1.54C above average.

 On Monday, the NSW Rural Fire Service issued total fire bans for greater Sydney and the Illawarra and Shoalhaven region.

 

Climate scientists have described the extreme temperatures across Australia since the middle of August as “gobsmacking”.

While high-pressure systems over the continent kept skies clear and pushed temperatures higher, climate scientists said the extreme nature of the heatwave was likely caused by global heating.

Dr Simon Grainger, a senior climatologist at the bureau, said: “When we get these significant heat events, they can break records by quite a large margin.”

He said ocean temperatures around the continent had been very high in July and this had “set the groundwork” for the warmer conditions.

Western Australia, South Australia and Queensland all set record winter high temperatures during the second half of August. Large parts of the country saw daily and nighttime temperatures more than 10C above average.

The hottest winter temperature on record for the country, 41.6C, was set on 26 August at Yampi Sound in the remote Kimberley area.

In NSW on Monday, the fire danger rating was high for greater Sydney and extreme for the Illawarra area.

 The NSW RFS inspector, Ben Shepherd, said it was not unusual to have elevated fire risk around this time of year.

“This is showing that while we did have wet weather initially, it quickly swung the other way to being very dry and warm. But it is the wind that is driving the fire danger up.”

There should be a return to moderate fire risk for the rest of the week, he said.

He said the past three years were relatively benign for fire weather, but the weather bureau forecasts were showing warmer than average conditions were likely for the next three months.

“That means now is the time to set up and get your property prepared and have your fire plans in place,” he said.

Later this week the Australasian Fire And Emergency Services Authorities Council is expected to release an outlook on the risk of bushfires around the country for spring.

PALO ALTO, Calif.--This is sort of like the "two, two, two mints in one" solution for the clean-tech set.

Australia's Terra Fuel Technologies has come up with a device that, when added to a diesel car, bus or truck, lets the vehicle also run partly on ethanol. You need to add a second gas tank on the vehicle to hold ethanol, but in the end, it's an ethanol-diesel car. The device, a black box, controls the flow of ethanol into the engine.

The company has tested it and will start selling it in the United States.

Who in their right mind would want this? Adding ethanol to a diesel engine actually improves performance of the vehicle by about 10 percent while reducing emissions, said Alexander Daniel, vice president of Business Strategies International, which is trying to help Terra Fuel get traction in the States.

Running a diesel engine on vegetable oil, a clean alternative, can degrade performance a little, even according to biodiesel fans.

Diesel drivers, of course, can reduce emissions by running their cars on a mix of regular diesel and biodiesel. But biodiesel is made from oil, Alexander and others at BSI noted, and a lot of countries don't have a lot of spare vegetable oil. Australia, for instance, grows sugarcane, which can be turned into ethanol.

PALO ALTO, Calif.--This is sort of like the "two, two, two mints in one" solution for the clean-tech set.

Australia's Terra Fuel Technologies has come up with a device that, when added to a diesel car, bus or truck, lets the vehicle also run partly on ethanol. You need to add a second gas tank on the vehicle to hold ethanol, but in the end, it's an ethanol-diesel car. The device, a black box, controls the flow of ethanol into the engine.

The company has tested it and will start selling it in the United States.

Who in their right mind would want this? Adding ethanol to a diesel engine actually improves performance of the vehicle by about 10 percent while reducing emissions, said Alexander Daniel, vice president of Business Strategies International, which is trying to help Terra Fuel get traction in the States.

Running a diesel engine on vegetable oil, a clean alternative, can degrade performance a little, even according to biodiesel fans.

Diesel drivers, of course, can reduce emissions by running their cars on a mix of regular diesel and biodiesel. But biodiesel is made from oil, Alexander and others at BSI noted, and a lot of countries don't have a lot of spare vegetable oil. Australia, for instance, grows sugarcane, which can be turned into ethanol.

India's Bhoruka backs Australian oilseeds expansion

SYDNEY, Sept 7 (Reuters) - Indian conglomerate Bhoruka Group will invest A$63 million ($54 million) in an oilseed and crushing facility in Australia that could spur an increase in the amount of oilseeds planted in Australia.

The plant, which will start production in October next year in New South Wales state, will have the capacity to crush and refine 170,000 tonnes of oilseed annually, largely for export markets including India and Japan.

It will require about 125,000 additional acres in Australia to be planted with oilseeds, or 5 percent more than currently planted, Bhoruka said.

Australia produces over 600,000 tonnes of edible oils and fats annually, but to date has largely exported unprocessed oilseeds such as canola rather than refined products.

The project, called Riverina Oils & Bio Energy (ROBE), expects to export 65,000 tonnes a year of refined vegetable oil once operating, and has plans to double output if an initial 12 months of operation proves successful.

It said some farmers may switch from water-hungry crops such as rice to oilseeds.

Bhoruka Chairman Sartya Agarwal and Indian businessmen Dhruv Saxena and Ravi Uppal will own 60 percent of the project, while U.S. venture capital firm Lotus Ventures will hold 40 percent.

Agarwal said his firm had been attracted to Australia because of the productivity of the agriculture sector and the potential to add value by crushing and refining oilseeds for export.

The ROBE plant will also produce up to 75 million litres of biodiesel over the long term, converted either from refined oil or imported palm oil.

Agrawal said Bhoruka is also considering a larger investment in Australia's agricultural processing sector, possibly a biomass fuelled power plant, capitalising on the group's experience as India's largest renewable electricity generator. ($1=1.170 Australian Dollar) (Reporting by Bruce Hextall)

India's Bhoruka backs Australian oilseeds expansion

SYDNEY, Sept 7 (Reuters) - Indian conglomerate Bhoruka Group will invest A$63 million ($54 million) in an oilseed and crushing facility in Australia that could spur an increase in the amount of oilseeds planted in Australia.

The plant, which will start production in October next year in New South Wales state, will have the capacity to crush and refine 170,000 tonnes of oilseed annually, largely for export markets including India and Japan.

It will require about 125,000 additional acres in Australia to be planted with oilseeds, or 5 percent more than currently planted, Bhoruka said.

Australia produces over 600,000 tonnes of edible oils and fats annually, but to date has largely exported unprocessed oilseeds such as canola rather than refined products.

The project, called Riverina Oils & Bio Energy (ROBE), expects to export 65,000 tonnes a year of refined vegetable oil once operating, and has plans to double output if an initial 12 months of operation proves successful.

It said some farmers may switch from water-hungry crops such as rice to oilseeds.

Bhoruka Chairman Sartya Agarwal and Indian businessmen Dhruv Saxena and Ravi Uppal will own 60 percent of the project, while U.S. venture capital firm Lotus Ventures will hold 40 percent.

Agarwal said his firm had been attracted to Australia because of the productivity of the agriculture sector and the potential to add value by crushing and refining oilseeds for export.

The ROBE plant will also produce up to 75 million litres of biodiesel over the long term, converted either from refined oil or imported palm oil.

Agrawal said Bhoruka is also considering a larger investment in Australia's agricultural processing sector, possibly a biomass fuelled power plant, capitalising on the group's experience as India's largest renewable electricity generator. ($1=1.170 Australian Dollar) (Reporting by Bruce Hextall)

Air New Zealand tested a jet fuel made from the jatropha plant.

For two hours, pilots tested the oil, in a 50-50 blend with conventional jet fuel in one of the four Rolls-Royce engines powering a Boeing 747-400 aircraft — the first test flight by a commercial airline using jatropha oil. Rob Fyfe, Air New Zealand’s chief executive, called the flight a milestone in commercial aviation. “Today we stand at the earliest stages of sustainable fuel development and an important moment in aviation history,” he said. The project has been 18 months in the works.
Unlike other biofuel crops like soybeans and corn, jatropha needs little water or fertilizer and can be grown almost anywhere — even in sandy, saline or otherwise infertile soil. Each seed produces 30 to 40 percent of its mass in oil, giving it a high per-acre yield, specialists said.
The results of the flight — and two others planned by rival airlines in the United States and Japan in January — will be closely watched by an industry that is trying to shift toward renewable, low-emissions fuels.
A sharp rise in crude oil prices — to more than $145 a barrel in July — offer a strong incentive for the industry to reduce its exposure to volatile oil prices. But pressure to reduce carbon emissions has also driven the search for alternatives.
The International Air Transport Association, which represents 230 airlines, wants its members to use 10 percent alternative fuels by 2017. The association has the goal that airlines will be able to fly carbon-free in 50 years, with the help of technologies like fuel cells and solar energy.
Such goals have ensured that research and development into greener flying have continued, despite the plunge in oil prices below $40 a barrel.
Having conducted a series of tests Tuesday, Air New Zealand and its partners, the aircraft manufacturer Boeing, the engine maker Rolls-Royce and the technology developer UOP, a part of Honeywell, will review the results “as part of our drive to have jatropha certified as an aviation fuel,” the flight’s chief pilot, Capt. David Morgan, said.
The hope is that the test results will lay the groundwork for jatropha to be commercially available in three to five years, executives from the companies said.
In February, Virgin Atlantic became the first airline to test a biofuel blend in a commercial aircraft, using a 20 percent mixture of coconut oil and babassu nut oil in one of its four engines.
Two more airlines are to test their alternatives next month. Continental Airlines will conduct a test flight on Jan. 7 using a blend that includes algae and jatropha, the first biofuel test flight of a commercial airliner owned by an American company.
And Japan Airlines is planning a test flight Jan. 30 using a fuel based on the camelina oilseed.
But the potential use of jatropha has not been free of criticism, with some observers fearing that farmers could be tempted to grow jatropha rather than edible crops in the hope of getting better prices.
Algae may be free of this potential problem, but research into algae is not as far advanced, said an Air New Zealand spokesman.
Air New Zealand said the jatropha used on Tuesday’s flight had been grown in Malawi, Mozambique and Tanzania.

Air New Zealand tested a jet fuel made from the jatropha plant.

For two hours, pilots tested the oil, in a 50-50 blend with conventional jet fuel in one of the four Rolls-Royce engines powering a Boeing 747-400 aircraft — the first test flight by a commercial airline using jatropha oil. Rob Fyfe, Air New Zealand’s chief executive, called the flight a milestone in commercial aviation. “Today we stand at the earliest stages of sustainable fuel development and an important moment in aviation history,” he said. The project has been 18 months in the works.
Unlike other biofuel crops like soybeans and corn, jatropha needs little water or fertilizer and can be grown almost anywhere — even in sandy, saline or otherwise infertile soil. Each seed produces 30 to 40 percent of its mass in oil, giving it a high per-acre yield, specialists said.
The results of the flight — and two others planned by rival airlines in the United States and Japan in January — will be closely watched by an industry that is trying to shift toward renewable, low-emissions fuels.
A sharp rise in crude oil prices — to more than $145 a barrel in July — offer a strong incentive for the industry to reduce its exposure to volatile oil prices. But pressure to reduce carbon emissions has also driven the search for alternatives.
The International Air Transport Association, which represents 230 airlines, wants its members to use 10 percent alternative fuels by 2017. The association has the goal that airlines will be able to fly carbon-free in 50 years, with the help of technologies like fuel cells and solar energy.
Such goals have ensured that research and development into greener flying have continued, despite the plunge in oil prices below $40 a barrel.
Having conducted a series of tests Tuesday, Air New Zealand and its partners, the aircraft manufacturer Boeing, the engine maker Rolls-Royce and the technology developer UOP, a part of Honeywell, will review the results “as part of our drive to have jatropha certified as an aviation fuel,” the flight’s chief pilot, Capt. David Morgan, said.
The hope is that the test results will lay the groundwork for jatropha to be commercially available in three to five years, executives from the companies said.
In February, Virgin Atlantic became the first airline to test a biofuel blend in a commercial aircraft, using a 20 percent mixture of coconut oil and babassu nut oil in one of its four engines.
Two more airlines are to test their alternatives next month. Continental Airlines will conduct a test flight on Jan. 7 using a blend that includes algae and jatropha, the first biofuel test flight of a commercial airliner owned by an American company.
And Japan Airlines is planning a test flight Jan. 30 using a fuel based on the camelina oilseed.
But the potential use of jatropha has not been free of criticism, with some observers fearing that farmers could be tempted to grow jatropha rather than edible crops in the hope of getting better prices.
Algae may be free of this potential problem, but research into algae is not as far advanced, said an Air New Zealand spokesman.
Air New Zealand said the jatropha used on Tuesday’s flight had been grown in Malawi, Mozambique and Tanzania.