The new E10 Unleaded will be available as an option at five Caltex and Ampol sites in Cairns for a trial period of six months but will not be available at any other Caltex or Ampol branded sites in Australia.
The federal government moved last month to head off consumer fears about using ethanol by setting a 10% cap on the fuel additive. Environment Minister David Kemp released the first scientific report commissioned by the federal government on the effects of ethanol, which can be made from grain or sugar cane waste.
The report showed 20% ethanol blends may damage engines but 10% was quite safe.
In February, some service stations in Sydney were found selling fuel with an ethanol content of more than 20%.
BP also dumped its federal government-funded trial of a 10% ethanol blend in six Brisbane service stations, blaming a slump in consumer demand amid fears of engine damage.
Ethanol in petrol is one attempt by the petroleum industry to meet the federal government's target of biofuels making up 2% of all fuels used by 2010.
