Caltex Australia signs contract for QLD ethanol

Caltex and Dalby Bio-Refinery Limited have announced a major new contract for supply of ethanol. The ethanol plant from which Dalby Bio-Refinery Limited’s will produce the ethanol is being built at Dalby in Queensland’s Darling Downs. The Dalby Bio-Refinery is expected to be completed in 2008 with site works already completed. At full capacity, the plant will produce in excess of 80 million litres of ethanol each year for distribution primarily in south-east Queensland. This will require a minimum of 205,000 tonnes of grain each year from the area’s grain growers.

The contract is for a minimum of 30 million litres of ethanol each year for three years from the date of plant completion, which is expected in 2008.

In the press release Caltex Managing Director & CEO Des King said:

Caltex’s supply contract is a sign of confidence in the Dalby project and proof of our commitment to the development of ethanol blend petrol. It is our first large scale contract for supply of ethanol from a plant yet to be constructed.

The contract shows the Australian Government’s biofuels policy is appropriate and is delivering results. Caltex is committed to annual targets under the government’s Biofuels Action Plan and will achieve those targets.

Caltex also has contracts in place with other suppliers for ethanol supply from existing plants in New South Wales and Queensland.

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