Ethanol use in the past two years has increased from 1:6 drivers to 1:4.

BP's e10 blend contains 10% ethanol and is currently sold at 58 BP service stations throughout E10 production. BP is the first major oil company to reach the 100 megalitre sales target in Australia.

The Queensland Government says the number of service stations retailing ethanol-blended fuel in the state has increased from 40 in 2005 to over 220 this year.

BP recently announced plans to roll out a further 25 sites in August 2007, a move that would treble its 2006 sales. It is aiming to sell 400ML of ethanol-blended fuels by 2010.

The company will also start production of "renewable diesel" at its Bulwer refinery in Queensland later this year.

Queensland's Development Minister John Mickel yesterday congratulated BP Australia for reaching the 100ML e10 target without one customer complaint.

"The Queensland Government plans to introduce a 5% [ethanol] mandate in all petrol sold and produced in Queensland by 2010," he added.

Mickel said the government's $7.3 million Queensland Ethanol Industry Action Plan had successfully driven consumer acceptance of the ethanol-blended fuel.

However he admitted research indicated a proportion of consumers are still concerned about ethanol damaging their car engines.