The Federal Government's position has so far been to encourage...

The Federal Government's position has so far been to encourage Australian petrol companies to voluntarily adopt a pro ethanol stance as an effective way to increase market awareness of ethanol blend products.

Anecdotal evidence would indicate that up to 10% ethanol blend has no adverse effect on the mechanical components of the internal combustion engine.

Furthermore, ethanol blend is less harmful to the environment that pure petrol, plus the foreign exchange saving by combining locally produced ethanol with petrol, would be enormous.

Federal Government is still using a carrot approach with the petrol companies, but should the same petrol companies resist, it is reasonable to assume that the carrot would be replaced by the stick.

The best way for the petrol companies to come onboard, would be for them to see financial gain from the shift. Perhaps a joint venture between the petrol companies and the ethanol manufacturers? Interesting thought....

Indcor (ICO) an Australian company listed on the ASX is strategically positioned to take advantage of such a move.

IMHO, ICO will be one of the stand-out stocks on the ASX in 2003.