BP will help Australia meet biofuels target

BP Australia unveiled plans to single-handedly exceed the Australian federal government’s 2010 national biofuels target at least a year before the scheduled delivery date. Biofuels production is on the increase in Australia, backed by a federal government policy to lift national output to around 2% of the 1,800 million liter/year transport fuel market by 2010. The government’s support for biofuels production has included more than A$37 million (US$27.90 million) in capital grants; A$52 million (US$39.22 million) in ethanol production grants; an excise honeymoon for domestically made ethanol; and, the introduction of an E10 label of assurance on all locally built vehicles. BP Australia’s new initiatives to boost biofuels production include an agreement to double the capacity of a proposed ethanol plant to be built by Primary Energy at Kwinana in Western Australia to 160 million liters/year, which is scheduled to begin in early 2007 and will be finished by 2008. (September 15, 2006)