Located in the Darling Downs, west of Brisbane, the Dalby Bio-Refinery is not due to start producing ethanol from sorghum until mid-2007. But it has already signed a contract to deliver an undisclosed amount to the company each year.
Caltex also announced it would purchase Petro Fuels – a partner in the Dalby Bio-Refinery consortium. This agreement will give Caltex access to another 11 sites already selling ethanol-blended fuels in southern and western Queensland.
While the company refused to disclose the volume and pricing arrangements, it said both agreements reflected its confidence in the ethanol market.
“The acquisition of Petro reinforces Caltex’s commitment to development of ethanol and other biofuel blends to help meet the Australian government’s biofuels target for 2010, as well as being good business for Caltex,” said general manager marketing Mark Burrowes.
“Caltex’s supply contract is a sign of confidence in the Dalby project and symbolic of our commitment to development of ethanol.”
Dalby Bio-Refinery Ltd – a consortium of independent fuel distributors, including Petro Fuels – last month announced it would start Stage One construction of a $54 million ethanol during the first half of 2006. The first stage will produce 40 million litres of ethanol per year, with the full project expected to produce at least 80 million litres annually.
