Queensland biofuels mandate helps bioethanol plant to beef up operations

A new ethanol mandate enacted by the Queensland Government has helped a bioethanol plant to expand its operations, according to a media report by ABC.

The Dalby biorefinery, which was once under the threat of closure and is based on the state's Western Darling Downs, has been running at capacity since the Queensland Government's ethanol mandate came into effect this month.

Under the new laws, ethanol-blended E10 fuel has to make up at least 30% of petrol available for sale in Queensland.

The plant, owned by United Petroleum, buys locally grown sorghum and processes the grain's starch into ethanol.

Green future

Chief operating officer David Szymczak said the mandate has secured the future of the facility, according to ABC.

"At this stage the plant is running at 100% and we foresee that going forward," he told ABC.

He added: "But with the uptake of E10 petrol and the boost to the economy, it's a win all round. It's good for all the grain producers in the state because the more grain that's consumed here for one of these sort of products like biofuels, means the other grain producers have more options for their grain and less competition from the local growers who are selling into biofuels.”

The biorefinery is expected to process 200,000 tonnes of grain this year.