BP produces ethanol/petrol blend in Australia
BP would begin offering regular unleaded petrol containing 10 percent ethanol made from sugar by-product 'C' molasses and sourced from CSR Ltd's Sarina distillery, also in Queensland, Truss said.
The move is aided by an A$8.8 million government grant.
"This is a welcome step toward meeting an election commitment made by the National and Liberal Parties that ethanol and biodiesel (biofuels) production in Australia would rise from 40 million litres last year to 350 million litres by 2010," Truss said.
In April last year, BP's Bulwer Island refinery in Brisbane was granted A$8.8 million under the Greenhouse Gas Abatement Programme to trial ethanol blended fuel and provide infrastructure for receipt, storage blending and distribution of ethanol.
BP had been trialing a blend of ethanol and premium unleaded fuel for months and now planned to mix it with regular unleaded petrol, Truss said.
The blend will be sold for the same price as regular unleaded petrol and should be accessible to more motorists, Truss said.
The government was currently undertaking a study to address market access problems for ethanol and biodiesel, including the merits of mandated minimum biofuel standards or voluntary arrangements, Truss said.