World News
Australian Sugar Producer Seeks Navy Biofuels Deals
An Australian sugar company is working toward providing biofuels to the U.S. and Australian navies, local newspaper the Whitsunday Times reports.
Mackay Sugar has been looking at the viability of converting a waste product of its production process, bagasse, into fuel and has done an economic study on its possible use for the production of ethanol.
"The outcome was that there would have to be specifically more research work done before you'd proceed with the project, particularly the overall economics," said John Hodgson, business development manager for the company.
"The bottom line is the economics of producing biofuels from sugarcane products, and they would have to compete with fossil-based fuels."
The company is now working on another study concerning the possible production of aviation fuel, and Hodgson said the company plans to do more research on the subject before a 2016 deadline for a project by the two navies.
"The US Navy has made it quite clear that a premium could be paid to have the security of another fuel type," he said.
"That may well be part of the economic study."
The U.S. Navy has committed to the development of biofuels as a way to protect the military from price shocks and jump-start the industry, despite complaints from critics that the fuels are too expensive.
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| VLSFO | MGO | |||
|---|---|---|---|---|
| $/mt | +/- | $/mt | +/- | |
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| Houston | 476.00 | 7.00 | 624.00 | 1.00 |
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| Global 20 Ports Average | 526.50 | 0.50 | 712.00 | 0.50 |
| Global 4 Ports Average | 483.00 | 2.00 | 644.50 | 0.50 |
| Global Average Bunker Price | 570.50 | 1.50 | 751.00 | 1.00 |
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