A report suggests Australian demand for biofuels has outstripped the rate of global production growth in the past year.

A study by APAC Biofuel Consultants shows demand has increased by 34 per cent, which is more than double the rate of world growth in production.

APAC joint chief executive Michael Cochran says a mandate for ethanol use in New South Wales and the fuel’s promotion in Queensland and Victoria have led to higher demand.

Petrol with 10 per cent ethanol now makes up 10 per cent of Australia’s fuel sales.

Mr Cochran says the benefits of switching to biofuels are more than environmental.

“It helps Australia with its fuel security. Australia is a large importer of both diesel fuel and petrol and both biodiesel and ethanol substitute for imports,” he said.

“Much of the new growth is expected to come from Queensland with the sugar industry.

“There’s also a new project that’s on the cards in Victoria, making ethanol from garbage waste and so forth.”

Source: ABC News.