Caltex signs contract for Dalby ethanol

Caltex and Dalby Bio-Refinery Limited (DBRL) have announced a major contract for supply of ethanol from DBRL's new ethanol plant to be built at Dalby in Queensland's Darling Downs.

The contract is for a minimum of 30 million litres of ethanol each year for three years from the date of plant completion, which is expected in 2008.

"Caltex's supply contract is a sign of confidence in the Dalby project and proof of our commitment to the development of ethanol blend petrol. It is our first large-scale contract for supply of ethanol from a plant yet to be constructed," said Caltex managing director and CEO, Des King.

"The contract shows the Australian government's biofuels policy is appropriate and is delivering results. Caltex is committed to annual targets under the government's Biofuels Action Plan and will achieve those targets."

"Dalby Bio-Refinery looks forward to working with Caltex to expand the use of renewable fuels in Queensland," said Dalby Bio-Refinery director Chris Harrison.

"More and more motorists are discovering the benefits of ethanol blended petrol, not just for the environment but in providing Australia with a secure and sustainable fuel supply that also helps regional and rural communities."

The Dalby Bio-Refinery is expected to be completed in 2008 with site works already completed. At full capacity, the plant will produce in excess of 80 million litres of ethanol each year for distribution primarily in south-east Queensland. This will require a minimum of 205,000 tonnes of grain each year from the area's grain growers.

The new contract incorporates the ethanol supply volume agreed under a much smaller contract with DBRL that was announced in December 2005.

Caltex also has contracts in place with other suppliers for ethanol from existing plants in New South Wales and Queensland.