Summary：**GrainCorp Pleads for Australia to Adopt Biofuel Mandates After Iran Conflict** *Australia should

**GrainCorp Pleads for Australia to Adopt Biofuel Mandates After Iran Conflict**
*Australia should adopt national biofuel mandates to bolster its energy security, according to GrainCorp Ltd., after months of uncertainty from the Iran war which sent shockwaves through the country’s economy.*

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### Introduction
GrainCorp Ltd., one of Australia’s largest agribusinesses, has urged the federal government to introduce nationwide biofuel mandates as a safeguard against future energy shocks. The call comes after the recent Iran‑related conflict disrupted global oil supplies, prompting volatile fuel prices and highlighting Australia’s reliance on imported petroleum. GrainCorp argues that a domestically produced biofuel framework would not only cushion the economy but also create new opportunities for rural communities.

### Key Developments
In a press release issued on 2 November 2025, GrainCorp’s managing director pointed to the sharp rise in diesel and petrol costs that followed heightened tensions in the Strait of Hormuz. The company noted that Australian refineries operated at reduced capacity for several weeks, forcing retailers to pass on higher costs to consumers. Simultaneously, grain harvests in the eastern states exceeded expectations, leaving a surplus of feedstock suitable for ethanol and biodiesel production. GrainCorp proposes that a mandatory blend of 10 % ethanol in gasoline and 5 % biodiesel in diesel—similar to standards in the United States and the European Union—could be phased in over the next three years.

### Industry Analysis
Analysts say the timing is strategic. Australia’s biofuel sector currently contributes less than 2 % of total transport fuel consumption, largely due to the absence of binding blend requirements. Economists at the Australian Bureau of Agricultural and Resource Economics estimate that a national mandate could cut annual oil imports by up to 15 %, saving roughly AUD 2 billion in foreign exchange. Moreover, the ripple effect on agriculture could be significant