$90 million ethanol plant in Australia on verge of acceptance

The recent free trade agreement between Australia and Korea has strengthened the proposal for a $90 million (€65 million) ethanol plant to be constructed in New South Wales, Australia.

Located in a 400km area of Deniliquin, the project is awaiting signature from Korean investors.

The plant, which will produce fuel and by-products from grain, will have the capacity to produce 110,000 kl of ethanol every year.

A significant amount of the fuel produced is expected to be shipped back to Korea, as a result of the free trade agreement that now exists.

Joo Sung Ho, the managing director of Dongmun IRS, expects the agreement to abolish a 20% tariff placed on imported oil.

Developers hope to begin construction of the plant in May this year, providing they receive the go-ahead from the New South Wales government.