The WA Nationals believe the State Government needs to play a pivotal role in creating a market for bio-energy and bio-fuels associated products.
Addressing the Bioenergy and Biofuels WA: Initiatives and Challenges Conference, the Nationals WA Agricultural spokesman Terry Redman said that a robust alternative fuels industry had the potential to reinvigorate rural communities by creating jobs, business opportunities, and value-adding grain and oilseed crops.
"The State has the capacity to produce the raw material but the State Government needs to lead the way in markets and possibly, incentives for biofuels," he said.
WA Nationals have long supported the development of the bio-fuels industry as it offers a clean alternative to existing fossil fuels, but also because it provides another source of cropping for farmers.
Crops like canola, wheat and soy are used as inputs in renewable fuels.
The viability of ethanol and bio-diesel will depend heavily on the establishment of a robust local market and the Nationals are keen to see WA at the fore front of any developments in the industry.
Mr Redman said the bi-partisan Biofuels Taskforce, which had been initiated by The Nationals WA, was a critical step in the development of a large scale biofuels industry in WA.
"There are many things to be investigated by the taskforce, including the feasibility of the State Government running its bus fleet on biodiesel and its vehicle fleet on E5 or E10 ethanol blends," he said.
"The taskforce might also find merit recommending that an industry be earmarked to trial the use of biofuels."
Mr Redman said consumer acceptance of biofuels was critical to the advancement of the industry.