Pumped over Iemma's biofuel plan - Environment Australia

The Government fuel contract ends on June 30 next year and the Premier, Morris Iemma, said yesterday that tenderers for the new contract would have to provide biofuels such as ethanol-blended petrol. He said the decision would help cut the Government's fuel bill and assist rural communities and the environment.Ethanol helps petrol burn more cleanly, and farmers have long hoped that the development of ethanol made from crops such as wheat will ensure better prices for their produce.Mr Iemma made the announcement at the Manildra ethanol plant near Nowra and urged the Federal Government to mandate E10, a 10 per cent ethanol blend, in fuel. The Federal Government has set a target of 350 million litres of biofuel use by 2010.E10 can safely be used in most vehicles built after 1986. Car makers have agreed to start putting labels on petrol caps of new cars stating E10 is acceptable.Australia now produces only about 100 million litres of ethanol a year, less than 1 per cent of fuel use.Australian Ethanol plans to build an plant at Coleambally in the Riverina and another in the Central West at either Forbes or Narromine.Primary Energy plans to build a plant at Gunnedah, in the state's north-west. The managing director of Primary Energy, Matthew Kelley, said that after years of "underhanded claims" about ethanol its value was being recognised.


Environment Minister welcomes BP's ethanol blend to Canberra (a media release from the minister)
The Australian Minister for the Environment and Heritage, Senator Ian Campbell, has welcomed the environmental benefits of BP Australia’s E10 ethanol blend fuel launched yesterday in Canberra.
Senator Campbell said work undertaken by the CSIRO has confirmed that ethanol blends have the potential to deliver a reduction in greenhouse gas emissions of between two and five per cent, when compared with neat petrols.
"The availability of E10 fuel, which is a blend of 10 per cent ethanol and unleaded petrol, is an important step towards building consumer confidence in ethanol blends," Senator Campbell said.
"Much of Australia’s ethanol is made from starch waste derived from grain. To convert this type of waste into a workable fuel is a sensible way forward.
"The Prime Minister’s announcement in September on the Government's assistance package to the biofuels industry has prompted a range of initiatives from the petroleum sector.
"The news from BP means that moves to have the Australian Government car fleet use ethanol blends such as E10 are now more feasible."