CSR awarded biofuels capital grant

Industry MinisterIan Macfarlane announced today that CSR Ethanol is to be awarded a BiofuelsCapital grant to install additional manufacturing facilities for ethanol in thefuels market. This grant demonstratesthe government’s confidence in the viability of ethanol in fuel blends, andwill help consumers regain confidence in renewable fuels.

“To translate the grant into aviable project it is important that we are able to develop sizeable markets,particularly in Queensland. We lookforward to working with all the key stakeholders to achieve this goal,” statedMartin Jones, GM CSR Ethanol.

“The key issue going forwardremains market demand and consumer confidence in the ethanol fuel blend. We are working with the local oil company’sdistributors and their principals to increase the number of outlets for theproduct and to gain acceptance for the product by motorists. This grant will provide additionalconfidence to move forward,” said Mr. Jones

CSR currently supplies ethanol,a renewable fuel, to BP and Caltex in Queensland. The grant is another steptowards increasing sales of the E10 ethanol/fuel blend in Queensland.

CSR Sugar CEO Ian McMaster said“We are very excited about the prospects of the grant. We have to demonstrate the viability of theproject to the Federal Government and meet certain milestones to take advantageof the funding. CSR has beenconsidering a range of options for fuel ethanol for several years, including amajor ethanol project in the Burdekin region. Success with this grant will foster further growth in the renewablefuels market, and if the markets develop sufficiently, may provide a base toencourage additional large scale investment”.