Ethanol policy becomes Australian election issue

In Australia, ethanol has become an issue in the upcoming national election. A group representing feed grains users and livestock owners opposed ethanol mandates, while the Deputy Prime Minister, Mark Vaile, have campaigned for expansion of a sustainable ethanol industry.

This month, New South Wales state premier Morris Iemma has ordered all state employees to use ethanol-blended fuel for government cars. The state has mandated that ethanol make up 2 percent of all motor fuel sales in New South Wales effective October 1, and the government hopes to increase this mandate to 10 percent by 2011.

Earlier this month, New South Wales Regional Development Minister Tony Kelly called for expansion of the Manildra ethanol production plant at Nowra, to help the state to meet its ethanol mandates.

BP has sold 39 million gallons of ethanol in Australia, but said it had set a goal to sell 78 million gallons of ethanol in the second half of 2007.

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