29 October 2010:  E5 slashed for now

Peak sugarcane group CANEGROWERS is disappointed that the Queensland Government has announced a delay into the introduction of the E5 mandate, while acknowledging that now may not be the time.

“Ethanol has clear advantages in reducing Australia’s reliance on imported fuel, improving rural employment and reducing pollution and CO2 emissions,” said CANEGROWERS CEO, Steve Greenwood, today.

He explained that the Australian industry does not have currently the capacity to produce ethanol to fill the additional demand the E5 mandate would have required. “Australia’s current lack of capacity to produce ethanol just may have resulted in imports from Brazil,” he said.

Greenwood says that without a mandate, ethanol production would be unviable because of current high prices for sugar.

“Sugar prices are at high levels and expected to remain so into the New Year.”