Ethanol is a clear, colourless liquid that biodegradable. It is a renewable non-fossil fuel produced from sugar and grain, which is highly flammable and burns cleanly.
Indcor plans to build one ethanol project a year for the next six years to generate over 300 million litres capacity by 2010.
Indcor chairman and CEO, Peter Anderton, said the Dalby deal will kick start a serious ethanol industry in Australia and compared to the US ethanol industry, the potential here in Australia is enormous.
"At long range crude oil (WTI) projections of $US22 per barrel and a 60c exchange rate, the Dalby project exhibits attractive and robust equity returns." Mr Anderton said.
Anderton said Indcor would initially inject $1.5 million into Dalby to bring the project to financial close with funds coming from a share purchase plan and placement to environmental and ethical investment funds. The company has appointed Wilson HTM Corporate Financial Advisors for the planned capital raising.
Australian currently produces around 135 million litres a year with the Commonwealth Government aiming for 350 million litres by 2010. Global ethanol production is 32 billion litres a year, with Brazil producing 12 billion litres annually with the USA producing 7 billion litres annually.
