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Australian ethanol expansion awaits approval

The Rees Labor Government in Australia is set to approve a AUD$400 million (€208.7 million) expansion of an ethanol plant owned by the Manildra Group, the largest manufacturer of ethanol in Australia.

The plan for expanding ethanol fuel production at the Shoalhaven Starches Plant is due to be approved this week by Planning Minister Kristina Keneally.

The approval will allow the Nowra, New South Wales (NSW)-based plant to boost production of the biofuel from grain and starch wastes to more than 300 million litres a year.

The plant produced about 115 million litres of ethanol last financial year.

NSW is the only state to enforce a biofuel mandate, requiring that unleaded petrol contain 2% ethanol.

At the end of Q4 2008 the NSW cabinet decided to triple the mandate to 6% by 2010 and to 10% by 1 July 2011.




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