Exploring the Role of Tallow in Biofuels: An insightful Q&A with Australian Renderers Association

In a recent discussion, Tom Woodlock, Senior Reporter for Argus Media, sat down with Jess Bloomfield, Executive Officer of the Australian Renderers Association (ARA), to delve into the world of tallow and its emerging significance in the biofuels industry.

Woodlock: What is tallow and what is it used for?

Bloomfield: Sure! Tallow has been used for centuries in products like soap, candles, and lubricants. Today, it plays an essential role in pet food and livestock feed, but its most exciting development is its growing role in biofuels. Tallow is high in energy and can be converted into renewable diesel or sustainable aviation fuel, helping to power a more sustainable future. As a by-product of the meat industry, rendering is the industrial process of heat treating and physical transformation of animal co-products, destroying pathogens, removing moisture, and separating solids to produce valuable protein meals or fats and oils.

Woodlock: What are the main markets Australian tallow is getting sold into for biofuels production?

Bloomfield: The main markets for biofuel feedstock for Australian tallow are the U.S. and Singapore.

Woodlock: The Australian government has been funding mandate studies for biofuels and pursuing certification schemes. What do you think of the chances the Australian government will announce a mandate for biofuels this year?

Bloomfield: It's certainly a possibility. The Australian government has been actively funding studies and exploring certification schemes, indicating serious consideration. However, introducing a nationwide mandate is a significant decision that would require the availability of feedstocks like tallow and the infrastructure to support a broader biofuel market. While a national mandate might not happen immediately, we could see more targeted initiatives or state-level mandates like those in Queensland and New South Wales. With Australia's focus on reducing food waste and supporting sustainable practices, biofuels are in the spotlight. So, while we're not entirely sure what will happen next, there's momentum in the right direction for biofuels in Australia.

Woodlock: How does the Australian tallow market trade, and what makes tallow a good biofuels feedstock?

Bloomfield: Most tallow in Australia is sold through a tender process with buyers bidding based on market conditions. Our main export hubs are in Brisbane and Melbourne, well-equipped to handle bulk shipments efficiently. These consignments are linked to price, time, volume, and specifications and sold business to business. Tallow is gaining significant attention for biofuels due to several factors:

• High Energy Content: Tallow has a high energy content, making it an efficient feedstock for renewable diesel and sustainable aviation fuel.
• Low Carbon Intensity: As a low-carbon feedstock, tallow helps reduce greenhouse gas emissions compared to fossil fuels.
• Compatibility with Existing Processes: Tallow is compatible with existing refining processes, making it a scalable and cost-effective option for biofuel producers.
• High-Quality Production: Australia's rendering industry is known for producing clean, high-quality tallow under strict regulatory standards, with robust traceability systems.

Woodlock: With the U.S. being one of the primary export destinations for Australian tallow, do you think the policies enacted by the current U.S. administration will be positive or negative for Australian tallow overall?

Bloomfield: This is still uncertain. Changes to tax credits, tariffs, and regulations could affect the competitiveness of imported feedstocks like Australian tallow. However, overall demand for biofuels driven by the global transition to greener fuels should continue to support the use of low-carbon feedstocks like tallow. While we may see some regulatory changes, the fundamental demand for tallow as a biofuel feedstock is likely to remain strong. Australia's focus on producing high-quality sustainable tallow ensures we remain a key player in the biofuels market. Staying proactive and responsive to evolving policies will be crucial for maintaining our position and adapting to changes in the U.S. and the global biofuel landscape.

"The fundamental demand for tallow as a biofuel feedstock is likely to remain strong."

• Tallow's Versatility: Tallow has a long history of use in products like soap and candles, and today, it plays a crucial role in pet food, livestock feed, and biofuels.
• Biofuels Market: Australian tallow is primarily sold into biofuel markets in the U.S. and Singapore, highlighting its global significance.
• Government Initiatives: The Australian government is actively exploring biofuel mandates and certification schemes, indicating a strong interest in promoting sustainable energy.
• Market Dynamics: Tallow is traded through a tender process, with major export hubs in Brisbane and Melbourne, ensuring efficient bulk shipments.
• Advantages of Tallow: Tallow is favored for biofuels due to its high energy content, low carbon intensity, and compatibility with existing refining processes.
• Policy Impact: Changes in U.S. policies could affect the competitiveness of Australian tallow, but the fundamental demand for low-carbon feedstocks remains strong.

If you want to learn more about Australian tallow or get in touch with the Australian Renderers Association, please visit their website or LinkedIn platforms. The Australian Renderers Association is committed to sustainability, quality, and innovation, and looks forward to supporting a greener energy future.

For more information on Argus's biofuel services, including daily biofuels reports, the monthly outlook, or quarterly analytics reports, please contact singapore@argusmedia.com.

Author: Tom Woodlock, Senior Reporter, Biofuels