The Queensland Government's attempt to mandate biofuels risks becoming a missed chance to generate jobs and stimulate regional communities.

AgForce Grains President Wayne Newton said the government's preferred two per cent mandate was only slightly higher than current production and wouldn't generate any extra regional employment.

"A mandated percentage is a step in the right direction but such a low mark is a missed opportunity," Mr Newton said.

"Our research shows that the existing industry could easily deliver four per cent. The low level the government is proposing would not create additional jobs and would fail to stimulate regional economies or communities.

"This mandate also fails to provide any future growth targets beyond mid-2016 so there's no incentive for new processors and more competition."

AgForce's submission to the Parliamentary Committee recommended a mandate of at least five per cent, with further incremental increases and the development of a sustainable domestic biofuels industry.

"I'm also concerned over the conditions under which the Minister may suspend the biofuel requirement," Mr Newton said.

"As outlined, a suspension of the biofuel requirement would be a serious impediment to the policy objectives of the Bill and the commitment to grow the biofuels industry in Queensland.

"We believe this section must contain greater definition around the period of time over which the shortage of supply or lack of demand for biofuels occurs that will satisfy the need to suspend the mandate."

AgForce calls on the government to support:

• The introduction of a mandate for both ethanol and biodiesel, with incremental increases;
• Support for research of suitable plant species research and other biomass sources for biofuel production and responsibilities for the Government to attract further investment in the biofuel sector;
• Appropriate investment in research and development, particularly in energy use efficiency that include cellulose-derived biofuels, to help incentivise the expansion of the current market within Queensland;
• A targeted education campaign on the actual benefits and disadvantages of biofuels is vital to the introduction and success of a biofuels mandate;

Media Contact – Sarah Henderson 0427 626 853