Biofuel Capital Grants

To increase the availability of biofuels for the domestic transport market, in July 2003 the Australian Government announced a fund for one-off capital grants to projects that provide new or expanded biofuels production capacity. The selection process was competitive and merit-based, and was held in two rounds, in May and August 2004. Grants were provided at a rate of AUD 16 cents per litre for new or expanded projects producing a minimum of five million litres of biofuel per annum. Grants were payable in three instalments consisting of: - 25 per cent of the grant amount (final investment decision and the commencement of construction) - 25 per cent of the grant amount (commissioning of the plant) - 50 per cent of the grant amount (first commercial sale into the domestic transport fuels market) Seven projects were funded and five facilities have been built through four grant recipients. Two grant recipients have completed post commissioning reporting. All funding rounds have closed, and the Department of Resources, Energy and Tourism now manages the contracts of successful applicants. Two projects were successfully completed and met post commissioning requirements under the Program. Two other projects covering three facilities have been completed but have not been able to fully meet post commissioning arrangements and are in discussions with the Government. Three projects have not proceeded.

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