$75 million for ethanol plant

Australian Ethanol has announced a $75 million capital to fund the construction of a 100 million litre per year fuel ethanol plant in Swan Hill, Victoria.

The rising oil prices are signalling a shortage of ethanol as consumers look for alternatives to petrol. The federal government has also stepped up its energy initiatives with Prime Minister Howard offering grants to service stations to upgrade their ethanol infrastructure and meet sales targets.

As major oil retailers and independent service stations aim to sell close to 350 million litres by 2010, the pertinent question being asked is are we doing enough to grow this emerging industry?

At the industry conference Biofuels Australasia 2006, Peter Anderton, Australian Ethanol chief, and 42 other CEOs will explore better models of growth as the economy sees ethanol go from a mere sliver of the fuel pie to a major energy solution in a world where the cost of relying on a finite supply of oil is way too high.

The conference will be held in Sydney on 20-22 November, and will examine how to beat the high cost of petrol with biofuels without inciting grain demand shift. It explores the potential risks and opportunities in biofuels across the global energy supply chain.

Biofuels Australasia 2006 brings together specialist financiers and institutional investors to analyse developments in biofuels derivatives, indices and equities. It addresses socially responsible investment philosophies and explores the role of soft commodities in the investment portfolio.