oh oh! grain prices rising!

This is the one thing ethanol producers do not want! Rising grain prices. It is a shame such companies do not think further a field and focus on commodities with low energy costs in production (sugar cane) in the first place or even focussing on waste like crop residues. Hundreds of thousands of tonnes of cellulose are burnt a year in Australia. New technology is going to allow this to be fermented and turned in ethanol! The following is from AAE's website and it appears they are focussed on grain for ethanol generation, which is great while grain remains cheap but I cannot see that remaining the case for too much longer.


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Australian Biofuels Pty Ltd
In April 2004 Australian Ethanol Limited acquired the company Australian Biofuels Pty Ltd. Australian Biofuels owns a number of development projects in Australia.

The demand for ethanol blended fuel in the Australian fuel or motor spirit market is driven by global vehicle compliance with international emissions and vehicle efficiency legislation, cleaner fuel policy and energy security issues faced by consumer countries including Australia.

More recently the increase in international fuel prices has triggered the fuel ethanol debate in Australia and internationally.

Australian Ethanol Limited research has established that the fuel ethanol industry in Australia forecasts substantial demand and growth from 2008 onwards. Australian Ethanol intend to be an established producer and distributor of ethanol at that time and be positioned to participate in the anticipated growth and market demand.

Australian Ethanol Limited has identified that 90% of the Australian motor spirit market lies south of a line from Mackay in Queensland to Adelaide in South Australia. The Company strategy is to build capacity in the regional Australia along this line to feed back fuel ethanol into the populous coastal centres including Sydney, Brisbane, Melbourne, Canberra, Adelaide and the major regional centres.

The first Australian ethanol project is planned at Swan Hill in north western Victoria.

Swan Hill Ethanol Project
The intent of Australian Biofuels Pty Ltd is to project finance, construct, and operate an ethanol production facility at Woorinen South, near Swan Hill in the north west of the state of Victoria, Australia. The proposed project is a greenfields development and would be the first multi-grain ethanol production facility in Australia. The project will be designed to produce 90 million litres of ethanol product comprising fuel grade, industrial and potable grade ethanol products. The Swan Hill Ethanol Project is estimated to cost AUD$80 million (US$60 million).

Australian Biofuels has completed the Definitive Feasibility Study for the Swan Hill Ethanol Project. Participants to the study included:

Swan Hill Chemicals Pty Ltd (Grain trials, grain supply, local interface) Swan Hill, Victoria;
Environmental Resources Management Australia Pty Ltd (Environmental and licencing) Melbourne, Victoria;
Praj Industries Ltd (Process and Instrumentation/Control) Pune, India;
Ausenco Limited (Engineering, Utilities and Infrastructure) Brisbane, Queensland;
Warrama Consulting Pty Ltd (Financial Modelling) Sydney, Australia;
ESD Consulting Pry Ltd (Plantation forestry and carbon offsets) Canberra, Australian Capital Territory;
James & Son Pty Ltd (By product handling and marketing) London, England, and Ballarat, Victoria;
Mitsui & Co (Australia) Ltd (Ethanol marketing and offtake) Melbourne, Australia.


Australian Biofuels have coordinated the preparation of the Definitive Feasibility Study and Project Financing Documentation.

The Planning Application for the Swan Hill Ethanol Project was submitted to the Swan Hill Rural City Council. Approval for the Swan Hill Ethanol Project was granted on 28 September 2004.

For further information on the Planning Application click here to request a copy of the Planning Application Summary Brochure.

Australian Biofuels has also established relationships with the major international Japanese financing and commodity trading group Mitsui & Company (Australia) Ltd. Mitsui have invested in the Swan Hill Ethanol Project Definitive Feasibility Study and subject to analysis of the Definitive Feasibility Study documentation, Mitsui intend to take an equity position (25%) in the development of the Swan Hill Ethanol Project. This may include entering into an ethanol marketing contract for the ethanol.

The major Australian project development and finance group, Multiplex Limited, together with private interests from the Roberts family, one of Australia’s most wealthy families, are the major shareholders of Australian Ethanol Limited, the parent company of Australian Biofuels.

Australian Biofuels have contracted the Indian process and engineering company, Praj Industries Ltd, to provide the ethanol technology and design the Australian ethanol projects. Praj have designed and constructed over 300 ethanol projects worldwide. The Australian engineer and constructor, Ausenco Limited, have been contracted to undertake the engineering and installation of the project utilities and infrastructure. Multiplex Engineering Pty Ltd have committed to the Engineering, Procurement and Construction (EPC) contract to project manage and construct the total project in conjunction with Praj and Ausenco.

Key features of the Swan Hill Ethanol Project include:

Planned ethanol production (before denaturing) of 90 million litres per year.
The Project will produce a high protein, high mineral stockfeed by-product (wet distillers grain and distillers syrup).
Process and water waste from the facility will be used to irrigate adjacent paddocks for the establishment of up to 500 Ha per year of hardwood plantations. This will act as a substantial carbon sink for the Project.
A future dairy or feedlot is also proposed for the facility long term to utilise the distillers' grain produced.
The commencement of construction in late 2005 with production commencing early 2007. Capital cost is estimated at US$60 million.
The Project will require at full capacity about 250,000 tonne of grain per year.
Ethanol from the Swan Hill facility is planned to be sold into the Melbourne, Adelaide, Canberra and possibly the Sydney markets, backloaded from Swan Hill in fuel transporters to the principle fuel demand locations in the major capital cities.

Coleambally Ethanol Project
Australian Ethanol Limited plan to build and operate a second ethanol production facility in Australia near the town of Coleambally in the Riverina district of New South Wales. Feedstock for the planned facility is locally grown corn produced in the Coleambally Irrigation District from irrigation waters of the Murrumbidgee River. Locally grown seconds quality wheat and barley from the adjacent dryland regions will also be used as grain feedstock to produce fuel ethanol. Farmer presentations have been held in the town of Griffith (near Coleambally).

Click here to view the grower presentation of 29 July 2004.

Key features of the Coleambally Ethanol Project include:

Planned ethanol production (before denaturing) of 90 million litres per year.
The Project will produce a high protein, high mineral stockfeed by-product (wet distillers grain and distillers syrup).
Process and water waste from the facility will be used to irrigate adjacent paddocks for the establishment of up to 500 Ha per year of hardwood plantations. This will act as a substantial carbon sink for the Project.
A future dairy or feedlot is also proposed for the facility long term to utilise the distillers' grain produced.
Capital cost is estimated at US$60 million.
Development of the Coleambally Project is planned to follow approximately 12 months after Swan Hill.
The Project will require at full capacity about 250,000 tonne of grain per year.
Ethanol from the Coleambally facility is planned to be sold into the Melbourne, Adelaide, Canberra and possibly the Sydney markets, backloaded from Coleambally in fuel transporters to the principle fuel demand locations in the major capital cities.

Forbes Ethanol Project
A further facility is planned for Forbes in New South Wales. The facility would adopt a similar model to Swan Hill and Coleambally and is planned at a size of 90 million litres per year fuel capacity.

Other Projects
Australian Ethanol Limited has also researched the feasibility and commercial viability of further ethanol projects in Australia and internationally.



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