Written on the 27 April 2015


COMMAG Limited has backed the state government's plans to advance the development of ethanol bioenergy projects in Queensland.

The jointly founded organisation between Sister City Partners and MacDonnells Law has previously called on the government to reintroduce an ethanol mandate in the state.

The mandate proposes five per cent of unleaded fuel sold in Queensland to be ethanol, to coincide with the commencement of biofuel production.

CommAg director Ian Conrad says the organisation welcomes the plans to grow an ethanol bio-energy industry in North Queensland.

"We hope that oil companies will be required to do more than merely provide an E10 or similar option," Conrad says.

"E10 sales do not currently form large part of the market and we think take-up will be limited.

"Oil companies should be required to provide an ethanol blend in place of ordinary unleaded fuel.

"At the very least, the ethanol blended fuel should be presented as the default option on every set of pumps."

Conrad says the mandate will help generate funding for three major ethanol biofuel projects in Townsville.

North Queensland Bio-Energy Corporation Limited plans to construct a $520 million sugar, ethanol and power generation facility in Ingham.

Austcane Energy Ltd also plans to build a plant in the Burdekin, with Renewable Developments Australia Pty Ltd securing land on the Cape River to harvest cane for an ethanol plant.

"We look forward to engaging further with the government in the promised consultation process," Conrad says.

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