Caltex has welcomed today's release by the CSIRO of its report on greenhouse gas and air quality emissions of biodiesel blends in Australia.

Biodiesel is a diesel substitute made from renewable materials such as tallow and vegetable oils which typically is blended into diesel at ratios of 2, 5 and 20pc, depending on the type of customer.

Caltex CEO, Des King, says, "Biodiesel blends also reduce emissions of very fine particles from diesel vehicle exhausts.

“Every litre of diesel supplied from Caltex's Newcastle terminal is New Generation Diesel containing 2pc biodiesel.

"The supply of our biodiesel blends from Newcastle saves our customers about 20 thousand tonnes of carbon dioxide emissions each year.

"In addition, Caltex supplies 5 and 20pc blends to commercial customers in various locations.

“A 2pc biodiesel blend can reduce greenhouse gas emissions by 1.5pc compared with the effect of unblended diesel, assuming the biodiesel is made from tallow.

"The reduction for a 5pc biodiesel blend is 3.7pc and the reduction for a 20pc is 15pc.

"Caltex has not purchased imported palm oil based biodiesel and will not, unless it can be shown to be sustainable to the satisfaction of key stakeholders in the countries where it is produced.

"Biodiesel made from palm oil sourced from existing plantations, offers similar greenhouse gas emission savings to tallow-based biodiesel.

"However, imported palm oil sourced from cleared rainforest or peat swamps would greatly increase greenhouse gas emissions.

"Caltex commissioned CSIRO to conduct the research on the greenhouse gas benefits of biodiesel blends to support development of renewable fuels.

"We also wanted to provide updated, authoritative information for our customers and everyone with an interest in biodiesel.

"Caltex supports development of biofuels in Australia. "We achieved our volume target for 2006 under the former government’s Biofuels Action Plan and have already achieved our target for 2007.