re: article on ethanol target
here it is, from yesterdays "Australian".
Drive to cap ethanol By Steve Lewis March 25, 2003
MOTORISTS will be using petrol containing a maximum 10 per cent blend of ethanol under plans considered by federal cabinet yesterday.
The Howard Government is not ruling out compelling the oil companies to use a minimum level of ethanol – a system the industry is hoping to avoid.
High-level talks, involving oil company executives and senior ministers in Canberra today, will be crucial to the outcome of the ethanol debate.
Ministers would like to introduce a 10 per cent cap on ethanol content, but today's talks will explore the industry's willingness to include ethanol in petrol on a voluntary basis.
Encouraged by the sugar industry, National Party MPs are spearheading the campaign to encourage the use of ethanol by oil companies. They argue it is more environmentally friendly and will provide a boost to rural industries, particularly sugar and wheat.
Ethanol is a by-product of the production of sugar, wheat and even wood chippings.
The oil industry is understood to have agreed to put up to 350 million litres of biofuels in petrol each year by 2010, which the Government committed to during the 2001 election campaign.
However, the Government has not yet decided whether to extend an ethanol production subsidy, designed to encourage oil companies to introduce ethanol into their fuel products.
Some countries allow up to 20 per cent ethanol use in fuel products. The Environment Department is testing whether the by-product is more environmentally friendly, amid concerns it could cause serious damage to some motor vehicle engines.
Cabinet yesterday discussed a submission from Deputy Prime Minister John Anderson and Environment Minister David Kemp following reports that unscrupulous retailers were selling high-blend ethanol petrol to unsuspecting motorists. Motoring groups say this is damaging engines and voiding warranties.
Mr Anderson, who as National Party leader is under pressure from within his party to kick-start the ethanol industry, will meet oil company executives today.
The Government has signalled it plans to introduce nationally consistent labelling laws, requiring petrol stations to provide motorists with full disclosure over the use of ethanol.
Although senior ministers would prefer to introduce a cap, the Government wants the oil companies to test what one source described as their "limits of volunteerism".
