$600m WA ethanol plant wins Govt backing Friday, 25 May 2007
Australia's biofuels industry received a significant boost today with Major Project Facilitation status granted to Grainol Limited's $600 million bioethanol project in Western Australia. The Grainol project is expected to create 250 jobs in the construction phase and 40 ongoing jobs during operation, and produce almost 400 megalitres of bioethanol a year from two new plants at Kwinana and Bunbury.
"This project will see Australia expand its bioethanol production using leading European technology and skills," Federal Minister for Industry, Ian Macfarlane.
"The two plants will help diversify the local economy and help Western Australian grain growers find new customers.
"As well as contributing to the growth of the Australian biofuels industry, the project will create valuable job opportunities in regional areas."
MPF Status will see Invest Australia assist Grainol Limited through Commonwealth and State Government approvals and help the company identify government programs which could be of assistance.
Meanwhile, the Queensland Government says the state must not rush into bringing in an ethanol mandate too soon.
According to Minister for State Development, John Mickel, an ethanol mandate is just one strategy to ensuring the industry is vibrant.
"But we need to be sure that it achieves its objectives and works with our other ethanol development strategies, particularly the Government's Queensland Ethanol Industry Action Plan 2005-2007," he said.
Mr Mickel said the Action Plan represented a $7.3 million investment in the ethanol industry in Queensland and the plan to date had achieved great success in both driving consumer acceptance of ethanol and the distribution of ethanol blended fuel.
The number of service stations retailing ethanol-blended fuel has increased from approximately 40 in 2005 to more than 220 today.
"The Queensland Opposition have stated that they intend to reintroduce to the Queensland Parliament legislation to enact an ethanol mandate in Queensland," Mr Mickel said.
"I think this legislation is premature.
"The introduction of a mandate requires careful consideration to ensure it effectively supports a Queensland ethanol industry.
"The Opposition's plan would force fuel companies to import ethanol and that serves neither the consumer nor the industry."
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