There's no money in it here Andy.
Our sugar growers are small and marginal producers and resist selling up to large concerns.
They have lobbied the government about ethanol production, unsuccessfully as it simply makes no commercial sense. The result would have been very large surcharges on ethanol sales as the government fisted money to the producers to make up for the inefficient production. Ergo, no market for the product.
Same problem with other vegetation used to produce ethanol. And you need to consider how many hectares of vegetation are required to produce the fuel requirements for a single vehicle for a year. I'll let you look them up, you wouldn't believe me if I told you
We simply could not support our current infrastructure on this fuel (and yes this does mean that our current infrastructure WILL change substantially and painfully in the future when oil gets too expensive and too strategic to be used for private transportation).
The Australian government does have a short-term view on alternative vehicular fuels - but look at their energy production policies! (coal powerplants in gas rich WA, gas powerplants in coal rich NSW - no effective unifying Federal policies on a strategic resource, rolling blackouts in summer in QLD, NSW and other states getting worse as we each consume more energy)
With vehicle fuels there's also the requirement for massive spending by service station owners on providing facilities for ethanol fueling, for refineries and transportation networks (to refine and distribute the ethanol), for automotive producers to make and sell appropriate vehicles.
To shift an entire economy even partially from one fuel to another takes a HUGE effort. Remember that Brazil was substantially under-developed when it shifted and so there wasn't the huge sunk cost in existing infrastructure that had to be replaced.
The shift towards unleaded fuels has taken more than 10 years and is still incomplete....and this is a fuel with the same characteristics as to storage and distribution as the fuel before it.
Hence if you want a meaningful shift to ethanol (putting aside it's poor functional qualities and additional cost of using it as a fuel) it would require a long-term approach by a government over at LEAST a twenty year period.
Think that's likely?
Personally I'm looking at more oil & gas assets - there's a guaranteed market for the effective lifetime of the wells and I can find investors.
I did offer some time ago to set up an alternate energy company if people on Somersoft were willing to put money into it - not a single response. I guess people here prefer to INVEST in companies that have a good chance of earning profits.
If I created a company that leased biogas plants to Nepal (Cost about $1K per plant, ROI 35% so payback in three years....with overheads call it a 20% ROI) maybe I'd get some interest, but payback is still much smaller than for fossil energy
With oil and gas I can reinvest profits into alternative energy sources that make economic sense at the time - better than sinking cash now into twenty year + propositions (I like geothermal - similar extraction characteristics to oil and gas and mature electricity conversion technology (it's steam power), but the land grab is on now and we've not proved that a business model works in Australia yet)
I'll make the offer again - if there are people out there willing to invest in alternate energy sources, get in touch with me and we can do the numbers to set up a company.
Note that it will require substantial upfront investment (start at $30M for geothermal and about 1,000x that for ethanol fuel to commercialisation) with a substantial risk of zero return (unknown market, risk of uncommercial production, lack of infrastructure and government support).
Cheers,
Aceyducey