Two more Australian ethanol projects cancelled, citing low prices, and lack of government and community support for biofuels

In Australia, two $80 million ethanol plants planned for Swan Hill and Murtoa in western Victoria have been cancelled because of low global ethanol prices, and lack of Government and community support. The Swan Hill plant would have produced 30 Mgy of ethanol.

The move came despite calls last week by New South Wales Regional Development Minister Tony Kelly for expansion of the Manildra ethanol production plant at Nowra, to help the state to meet its E2 mandate that came into effect on October 1st, and meet half of the demand created by the statewide E10 mandate proposed for 2011.

Last month in Western Australia, Ord River sugar growers asked the Western Australia government to support the Ord Stage 2 expansion project, which will provide more land for sugar and give the growers enough economy of scale to produce ethanol from sugar. But Australian ethanol project developers such as Agri Energy have also cited the lack of government and community support as key factors in project cancellations.

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