Aussie auditor-general says political pressure resulted in $1 million grant for ethanol plant that was never built

In Australia, a report from the auditor-general on the Federal Government’s Regional Partnerships program concluded that political pressure was applied in fast-tracking the Gunnedah Grains to Ethanol project. The project received more than $1 million in Federal support but has never been built.

The member of parliament for the district is John Anderson, former deputy prime minister, who made contacts with officials in support of the project.

Both major political parties announced investment policies for biofuels as the country nears a November 24 election date. The ruling Coalition government proposed a $16 million program to support cellulosic ethanol research and promote biofuels education. Labor Party leader Kevin Rudd pledged $15 million toward second-generation biofuel plants, with a goal of making next-generation ethanol commercially viable by 2017.

Numerous ethanol plants in Australia have been cancelled in recent months overing limited government support as well as ethanol price and feedstock market conditions.

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