Officially opening the Ethanol - the Smart Way Forward conference at the Brisbane Convention and Exhibition Centre earlier this week, Beattie said Queensland would draw on the experience of the world's best ethanol producers to develop a first-class industry.

He said his government has earmarked $7.3 million for the Queensland Ethanol Industry Action Plan which covered a range of initiatives over the next two years.

"The plan includes key initiatives to stimulate investment and provide infrastructure for the ethanol industry," Beattie said.

"We will also implement a $2.28 million marketing campaign to ensure that ethanol becomes a household word.

"We know ethanol is the way forward for our cane farmers and millers. It offers a real alternative to sugar production and could very well be the saving grace for our sugar-based communities spread right along Queensland's coastline."

Beattie said ethanol was an international growth industry and the time was right for Queensland to enter the market.

In other news Caltex Australia said it would be selling a 10% ethanol blend in north Queensland following the completion of a two year sales trial.

Marketed as E10 Unleaded, the blend would be available from the Townsville outlets of Caltex. Other distributors would be retailing the fuel through their networks in south east Queensland.