Australian biofuels total production for 2014 is estimated at 330 million liters (ML), comprised of 265 ML of ethanol and 65 ML of biodiesel. Production of ethanol is stable but biodiesel output has been more variable. The 2014 federal budget will phase down the excise rebate for local production of both ethanol and biodiesel beginning in mid-2016 and an excise rebate for biodiesel imports will be removed starting in mid-2015. This change is expected to have little effect on overall production, as most biodiesel is sold into the mining, agricultural and road transport sectors, which are exempt from the excise. Second generation biofuels such as renewable biodiesel, energy crops, and algae-based fuels have been successfully demonstrated but have not yet been successfully commercialized.
