Freedom Fuels has committed to converting 24 service stations in the Brisbane area to supply E10 fuel (10% ethanol with 90% petrol) to consumers.
"Freedom Fuels was the first applicant to apply for funding under this new scheme and it is the first to be approved," deputy premier Anna Bligh said.
"Freedom Fuels has already started converting its outlets, with 18 of the planned 24 now supplying E10, and this grant will enable them to step up the process."
Freedom Fuels now expects to complete its E10 rollout by the middle of October.
The Queensland Ethanol Conversion Initiative aims to increase the general demand for ethanol and ultimately stimulate an expansion of Queensland's ethanol production industry.
Queensland now has 88 fuel outlets offering E10, a significant number in the absence of any national ethanol mandate. According to Bligh the $7.3 million Queensland Ethanol Industry Action Plan will see numbers steadily increase.
