Federal Industry Minister Ian Macfarlane helped launch the "E10 suitable" sticker campaign at Metro Ford in Brisbane yesterday, where the first stickers have been rolled out on new Falcon and Territory models.
The label will also be used on new Commodores and Mitsubishi 380s, with plans to label all new ethanol-capable vehicles.
The labelling initiative is one of several strategies developed in 2005, when Government met with auto manufacturers and petroleum companies to discuss the future of Australian biofuels.
"The Australian Government has invested more than $37 million in biofuel capital grants and $44 million in ethanol production grants to support expansion in Australia's ethanol production capacity," Macfarlane noted.
In addition to its investment in establishing ethanol production facilities and infrastructure, the Australian Government has a separate funding program for ethanol confidence-building initiatives.
Australian ethanol production increased by 44% (from a modest base) during the last six months of 2005, the minister said.
"The challenge now is to build up the demand side of the equation by increasing consumer awareness and confidence in ethanol products," Macfarlane said.
Macfarlane said the stickers would help consumers overcome fears that ethanol can reduce performance or damage the car's engine.
"It's a visual reassurance to motorists at the bowser and a vote of confidence from Australian car manufacturers in the suitability of E10 fuel for their cars," he said.
"The onus is now on the industry to build on these efforts and develop a strong and sustainable Australian ethanol market."