BP to become Australia's largest biofuels marketer

BP Australia and Manildra Energy Australia announced one of Australia’s largest biofuels supply agreement. BP will receive 40 million liters of ethanol from Manildra’s Bomaderry ethanol plant over the next year, with deliveries commencing in August. BP is investing approximately A$4 million (US$3.36 million) to enable the delivery, storage and blending of ethanol at its Newcastle and Parramatta terminals in New South Wales (NSW). The ethanol will be blended to produce regular, unleaded petrol with up to 10% ethanol that will be sold across NSW. BP Australia President Gerry Hueston said: “Increasing the supply of biofuels is part of BP’s long-term strategy to provide Australian motorists with the choice of a range of cleaner fuels. Selling more ethanol blended fuel at more service stations is just one part of our strategy.” BP Australia recently launched its 10% ethanol fuel blend at its Victoria Rd. service station at Rozelle, NSW. A spokesman said 50 outlets would offer BP Unleaded 91 by the end of the year, which would make up almost half of the company’s sales in New South Wales (NSW). The ethanol-blended petrol will be 2 to 4 cents cheaper than regular unleaded. BP said it had sold 100 million liters of ethanol-blended fuel without receiving any complaints. At least 2% of the petrol sold in NSW after October 1 must be ethanol blends. (August 24, 2007)