New study on ethanol in the Ord released

5/4/07
Ethanol production from sugar cane in Western Australia's Ord River irrigation area could be competitive with ethanol production from grain in the southern part of the State, according to a study released today by Agriculture and Food Minister Kim Chance.
The study into ethanol and sugar cane production in the Ord River region was funded by the Governments of Western Australia and the Northern Territory and was based on estimated sugar cane production, processing costs and forecast prices for sugar and ethanol products.
"It is one of many investigations under way into the potential development of agricultural land in the Ord River irrigation area, and its findings will be useful to private sector proponents of proposals to develop land in Ord Stage II," Mr Chance said.
The Minister said it was important to consider carefully the current and future opportunities for ethanol production in WA.
"Demand for ethanol is growing rapidly worldwide in response to high crude oil prices and public desire for increased use of biofuels," he said.
"The demand in Asia, in particular, appears likely to escalate, with Japan and South Korea set to become large importers."
Mr Chance said the Ord River Area should be well placed to produce ethanol from sugar cane, with growing conditions good, and plenty of land and water available.
The report concluded that with an upgrade of the throughput of the existing sugar mill to 1.1million tonne of cane, ethanol could be produced from molasses associated with sugar production at an ex-refinery cost of around 50 cents per litre or 56 cents delivered to a capital city.
"The cost is similar to estimates of the breakeven price of ethanol production from wheat, after including revenue from the by-products of wheat processing," the Minister said.
Mr Chance said the release of the Ord ethanol report would assist the State Government's Biofuels Taskforce, which was currently investigating the future development of the WA biofuels industry.
Mr Chance said the Carpenter Government was making decisions for the future by encouraging innovation and promoting new industries within WA.
The taskforce, whose members include parliamentarians and senior representatives from eight Government departments, has a 12-month term and is due to report to the Minister this year.

Minister's office - 9213 6700