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INNOVATION IN PRACTICE
How agriculture can switch diesel for alternative energy to power industry
AgriFutures Australia research has revealed practical pathways for the agriculture, fisheries, and forestry sector to switch diesel powered machinery and equipment to alternative energy sources such as methane, battery and hydrogen fuel cell electric.
Machinery manufacturers have developed alterna- tive fuel prototypes in hydrogen, biogas and battery electric, and are working to identify the market de- mand for new fuels, machinery and equipment. It is therefore timely to understand the poten- tial pathways for the sector to transition away from diesel. Key findings The agriculture, fisheries and forestry sectors across Australia are universally affected by the need to transition from fossil fuel-based diesel to alternative energy sources. The market is responding with developments in hydrogen fuel cells, battery electric and bioenergy equipment, and machinery. But demand in Aus- tralia is yet to be established.
Petroleum diesel fuel is the most widely used source of energy in the Australian agriculture sector, repre- senting 84 per cent of total energy consumption in 2020-21. It is culturally ingrained as a practical, effi- cient fuel that can be stored for long periods on-farm as it is less hazardous than petrol in hot weather. Diesel also often serves a range of practical pur- poses beyond use as fuel, for example as drilling fluid, for removing tree stumps or as a solvent. The diesel dilemma The sector is facing pressure to reduce its green- house gas emissions while simultaneously facing supply risks, rising input prices and price volatility for petroleum diesel fuels. While a focus on reducing emissions and switching to renewable energy sources is important in addressing climate change risk, there are also broader economic and fuel sec- urity issues driving the need for transition. Australian governments are stimulating invest- ment in alternative energy infrastructure, such as charging stations for electric vehicles and position- ing hydrogen as a key component of the country’s future energy landscape.
Barriers to supply and demand: • Upfront investment
• Investment case for early adopters • Uncertainty in demand forecast • Availability of regional skills and energy supply chain.
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