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From cask to car, could red wine be Australia's next fuel? - abc.net.au - News Directory 3

From cask to car, could red wine be Australia’s next fuel? – abc.net.au

May 17, 2026 Victoria Sterling Business
News Context
At a glance
  • The Australian wine industry is investigating the conversion of a 263-million-litre surplus of wine into biofuel to address a significant oversupply of product.
  • Lee McLean, the chief executive of Australian Grape and Wine, stated that the vast majority of the current oversupply consists of red wine.
  • The proposed process involves extracting ethanol from the wine through distillation.
Original source: abc.net.au

The Australian wine industry is investigating the conversion of a 263-million-litre surplus of wine into biofuel to address a significant oversupply of product.

Lee McLean, the chief executive of Australian Grape and Wine, stated that the vast majority of the current oversupply consists of red wine. He indicated that the volume of wine currently in storage makes it sensible to examine the economic viability, barriers, and opportunities associated with converting the surplus into fuel for cars, trucks, and aircraft.

Ethanol Production and Yield

The proposed process involves extracting ethanol from the wine through distillation. Industry projections suggest that the 263 million litres of surplus wine could produce approximately 30 million litres of ethanol.

Ethanol Production and Yield
Rachel Burton

Rachel Burton, a plant science professor at the University of Adelaide, noted that the ethanol found in wine is not fundamentally different from the ethanol used in E10 petrol. According to Burton, the primary distinction lies in the purification process.

Technical Feasibility

The conversion relies on the fact that wine has already undergone fermentation, meaning the ethanol is already present in the product. To isolate the bioethanol, the industry would use distillation, a process that involves applying heat to separate the alcohol from the rest of the liquid.

Distillation simply involves applying heat to separate out the alcohol. It’s essentially the same process used to make whiskey or tequila.

Rachel Burton, University of Adelaide plant science professor

Professor Burton explained that while flavor is a critical factor for spirits sold to consumers, it is irrelevant for industrial fuel applications. She noted that the aeroplane doesn’t care what [the fuel] tastes like.

Economic Rationale

The investigation into biofuel conversion is a response to a glut of wine that has exceeded market demand. By pivoting a portion of the oversupply toward the energy sector, the industry seeks to create an alternative use for a product that would otherwise remain in storage.

Lee McLean stated, We’ve certainly got plenty of red wine in storage in Australia at the moment, adding that the current fuel situation makes the exploration of these alternative economics a logical step for the industry.

While the theoretical basis for the conversion has merit, Professor Burton indicated that there are still logistics to be resolved before the process can be implemented on a commercial scale.

Inside the mega factory that produces half of Australia's cask wine

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Australian Wine and Grape, biofuel, ethanol, Lee McLean, oversupply, Wine, wine glut

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