Published Monday, 18 August, 2008 at 03:21 PM

Minister for Tourism, Regional Development and Industry
The Honourable Desley Boyle

Queensland ethanol facility helps ease petrol pump pain

A $2.5 million upgrade to Caltex’s Brisbane fuel distribution centre will boost Queensland’s ethanol blended fuel capacity providing Queensland residents with cleaner and cheaper petrol, Industry Minister Desley Boyle announced today.

Ms Boyle officially opened Caltex Australia’s new ethanol storage and blending facilities at its Lytton Terminal.

Ms Boyle said the new facilities would help one of Australia’s biggest petrol companies meet rising demand for ethanol blended fuel, particularly in south-east Queensland.

“This is another major step forward in the Bligh Government’s commitment to a 5 percent ethanol mandate by 2010,” Ms Boyle said.

“The Queensland Government is working in close partnership with industry to grow the state’s ethanol industry, with Caltex agreeing to buy at least 30 million litres of ethanol annually for three years from the new Dalby Biorefinery, due to open later this year.

“Queensland currently produces about 32 million litres of fuel ethanol per annum, with all of this derived from molasses, a by-product of sugar production.

“Under the Government’s 2010 planned five percent ethanol mandate, the State would need to be able supply 170 million litres per year of ethanol blended fuel to motorists.

“This is why Caltex’s upgrade of its Lytton Terminal is so important. It’s supporting the growth of a local Queensland ethanol industry and also providing us with the means to meet future fuel demand.”

Ethanol in Queensland is produced at CSR’s Sarina plant, with the facility expected to increase production to about 60 million litres per year in 2009.

Additional production is expected from the Dalby Biorefinery later this year, which has a production capacity of approximately 90 million litres per annum. There are also plans for a third facility at the Rocky Point Sugar Mill near Beenleigh.

Ms Boyle said the Queensland Government was committed to biofuels, given the fact that ethanol blended fuel helped us to reduce greenhouse gas emissions, ease the financial burden on Queenslanders as well as reduce the State’s reliance on increasingly expensive oil imports.

“When we launched our Ethanol Industry Action Plan in 2005 to promote the uptake of ethanol blended fuel among motorists, about 40 service stations in Queensland offered the fuel,” Ms Boyle said.

“Today, you can buy ethanol blended fuels at over 370 service stations across the State.

“Thanks to the Government’s +e marketing campaign, the number of Queensland motorists trialling ethanol blended fuel rose from one-in-six to two-in-five over the 2005 to 2007 period.”

Deputy Premier and Member for Lytton Paul Lucas said this was also another major boost for the local community.

“Caltex has been a long supporter and employer of the Wynnum-Manly and surrounding region community,” Mr Lucas said.

“This increased investment in new biofuel facilities will mean new employment opportunities and reinforces the company’s long-term commitment to the region.”

Caltex Australia Managing Director and CEO Des King said 92 service stations in the Caltex network in Queensland and 225 nationwide currently offered “Bio E10 Unleaded” and that the company had been providing E10 unleaded fuel in Queensland since 2003.

“The upgrade to our Lytton Terminal will allow more customers in Queensland the choice of a fuel that helps to decrease reliance on fossil fuels and reduce greenhouse gas emissions,” Mr King said.

He said the Caltex Lytton Terminal upgrade had the capacity to store 840,000 litres of ethanol.

18 August 2008

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