Investment in ethanol production facilities in Australia Over the last year, Agri Energy has committed over A$100m to the global biofuels industry. The AAE group plans to commit twice that amount globally over the next twelve to eighteen months.
A significant portion of the funds commitment for 2008 are intended to develop ethanol production in Australia to meet the expected shortfall forecast for the first half of 2008.
This fuel ethanol shortfall has resulted from:
1. Successful branding of ethanol blends in premium fuels by the major oil companies in Australia; 2. Increased availability of ethanol blended fuels to the Australian consumer market as a result of an increase in the number of fuel retail outlets offering ethanol blended fuel; 3. The anticipated impact on blended ethanol fuel demand from July 2008 which is the next milestone date for the National Fuel Quality Standards Act legislation requiring Australian motor spirit to comply with Euro 4 standards; 4. The phasing in of higher octane fuels in preference to traditional lower octane unleaded petrol in the Australian motor spirit market; and 5. The overall community awareness of the health and environmental benefits of biofuels.
To meet the expected increased demand for fuel ethanol in Australia, the Agri Energy group plans to complete construction and start-up the Swan Hill Ethanol Project in the first half of 2008.
In addition, the company has advanced plans to develop additional ethanol production capacity in the grain growing states of NSW, Victoria and Western Australia. A roll-out of additional production is planned at Condobolin, Oaklands and Coleambally in NSW; Murtoa in Victoria; and the mid-west wheat belt region in Western Australia.
The timing and sequencing of these developments is under constant review and is dependent on the prevailing market and commercial conditions. Technology and engineering design of these facilities is identical to the Beatrice Ethanol production facility being developed by the company in Nebraska, USA. The company targets to have development licenses for all planed east coast Australian ethanol production facilities in place in 2007.
Agri Energy ethanol production facilities In accordance with the Agri Energy mission to be at the forefront of the next stage of growth and development of the ethanol industry in Australia, the company commissioned the preparation of an independent report to assess the Life Cycle Analysis incorporating greenhouse gas emissions and energy balance for ethanol production facilities planned over the next few years. Agri Energy has been advised that the Life Cycle Analysis Report is the first study to be undertaken for Australian ethanol production facilities using the principles and methodologies developed in Australia by the Australian Greenhouse Office.
The findings of this report were tabled yesterday at the Ethanol Industry Roundtable held in Canberra at which the Federal Minister for Industry, Tourism and Resources, Ian MacFarlane hosted industry stakeholders.
The Life Cycle Analysis Report key greenhouse gas findings for the planned Agri Energy NSW ethanol production facilities are: • The total ethanol output of one of the planned NSW production facilities displacing on an energy equivalent basis premium unleaded petrol as E85 blended fuel will reduce greenhouse emissions by approximately 170,000 tonne per annum of carbon dioxide equivalent. This represents removing the greenhouse gas equivalent of 37,700 cars annually or the greenhouse gas produced in providing the energy requirements of 14,160 houses. • E85 generates 32% less greenhouse gas emissions than premium unleaded petrol (on an energy equivalent basis). • E85 generates 13% less greenhouse gas emissions than LPG (on an energy equivalent basis).
The Life Cycle Analysis Report key energy balance findings for the planned Agri Energy NSW ethanol production facilities are: • E85 contains 38% more energy than is required to produce it. • Premium unleaded petrol in Australia contains 12% less energy than is required to produce it. • LPG in Australia contains 6% less energy than is required to produce it.
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