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Could wine be Australia’s next biofuel?

Nabila by Nabila
May 28, 2026 | 12:45
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The Idea of Using Red Wine as Motor Fuel

Using red wine as motor fuel could bring new meaning to the term “drink driving.” Australia’s wine industry is exploring whether its current 263-million-litre glut of wine would be better used as biofuel to power cars, trucks, or even aircraft. Australian Grape and Wine chief executive Lee McLean mentioned that the majority of the oversupply was red wine and it made sense to consider alternative uses for the surplus product.

“We’ve certainly got plenty of red wine in storage in Australia at the moment,” he said. “With the current fuel situation, it seems sensible to at least explore the economics, barriers and opportunities related to converting some of this into biofuel.”

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Converting Wine into Ethanol

Filling the tank on fumes, ethanol would be extracted from the wine through distillation, with 263 million litres of wine expected to produce about 30 million litres of ethanol. University of Adelaide plant science professor Rachel Burton explained that the ethanol in wine was not fundamentally different to the ethanol found in E10 petrol.

“The difference is in purification,” Professor Burton said. “If you wanted to isolate the bioethanol, you would do that through distillation, which is the same process used to make spirits.”

Professor Burton noted that while there would be logistics to work out, the theory behind the idea had merit. “Since the wine is already fermented, the ethanol is sitting there in the product already,” she said. “Distillation simply involves applying heat to separate out the alcohol. It’s essentially the same process used to make whiskey or tequila. The difference is that for spirits sold to consumers, flavour matters. For biofuels, it doesn’t — the aeroplane doesn’t care what [the fuel] tastes like.”

Global Consumption Trends

Mr McLean pointed out that the amount of wine consumed globally in 2025 had dropped to 1961 levels, when the world population was 40 per cent of its current size. “We’re dealing with a significant oversupply, not just of wine but also in vineyard capacity,” he said. “It’s a perfect storm for grape growers and wine makers, with grape prices in many areas sitting at about half the cost of production.”

Wine consultant Leon Deans suggested that distillation could be a viable option to remove the oversupply, but may require government support because the cost of distilling the wine could be higher than the revenue from the ethanol. “Broadly speaking, you’d probably need something in the order of about 15 cents per litre of wine to cover the gap,” Mr Deans said. “And that assumes we would still recover some value from converting it into a final product such as pharmaceutical-grade alcohol or fuel-grade ethanol.”

Mr Deans added that removing the oversupply would help the industry restructure. “China was seen as the great saviour seven to 10 years ago, but now that market has stabilised and ended up being much smaller than many had hoped,” he said. “Over the past 20 to 25 years of imbalance between supply and demand, many growers have had to sell their water entitlements just to survive. That makes exiting difficult because there isn’t necessarily a cash-positive pathway out.”

Potential Benefits and Challenges

The idea of using red wine as biofuel presents both potential benefits and challenges. On one hand, it offers a way to utilize an oversupply of wine that might otherwise go to waste. On the other hand, it requires careful consideration of the economic and logistical aspects involved.

For instance, the process of distillation would need to be efficient and cost-effective to make the project viable. Additionally, there are questions about how this approach would affect the broader wine industry, including the potential impact on traditional markets and consumer preferences.

Despite these challenges, the concept highlights the innovative thinking required in times of economic uncertainty. By exploring alternative uses for surplus products, industries can adapt and find new ways to sustain themselves.

Future Prospects

As the discussion around using red wine as motor fuel continues, it remains to be seen whether this idea will gain traction. However, the underlying principle of finding sustainable solutions to address oversupply issues is likely to remain relevant in the future.

Whether through biofuel, other industrial applications, or new market opportunities, the wine industry must continue to evolve to meet changing demands. This includes not only adapting to shifts in global consumption patterns but also exploring creative ways to manage surplus production.

In conclusion, the proposal to use red wine as motor fuel is a unique and thought-provoking idea that reflects the need for innovation in the face of economic challenges. While there are many factors to consider, the potential benefits of such an approach could pave the way for a more sustainable and resilient wine industry.

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