Big grain to ethanol deal signed in Western Australia

The CBH Group’s grain marketing arm, Grain Pool Pty Ltd today signed an historic ten year agreement to supply grain to Primary Energy’s proposed ethanol facility in Kwinana. Primary Energy announced EPA and Ministerial consent for the ethanol plan in July this year and expects to have the plant operational in the third quarter of 2009.

The Primary Energy plant will consume up to 500,000 metric tonnes of grain, primarily wheat and barley, and produce at least 160 million litres of ethanol for blending into local fuels to be distributed by BP. The plant will also produce over 100,000 tonnes of semi organic broad acre fertiliser and other protein based co-products for export and domestic use.

Ethanol from the plant should also prove a real environmental winner for West Australian motorists with the carbon equivalent of over 90,000 cars removed from our roads each year as a result of using ethanol blended fuels.

Grain Pool Pty Ltd General Manager Dr Andy Crane said the supply agreement would expand the domestic grain market options for Western Australian grain growers.

Unlike grain for food production, the grain that is used to produce bio-fuels requires less protein and more starch, so this in itself opens up an alternative pathway to market for those growers who are able to produce high yielding crops with lower protein levels.

This is particularly pertinent for grain producers on the fringes of Western Australia’s grainbelt and potentially provides further opportunities for the development of new varieties in this state.

Dr Crane said the ethanol plant would be located directly adjacent to the CBH Group export terminal in the Kwinana industrial area and it is intended the plant will be serviced by a conveyor link direct from the CBH Kwinana Grain Terminal.

Source: Grain Pool via WA Business News

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