Ethanol Distribution Program

On 14 August 2006, the Prime Minister announced the establishment of the Ethanol Distribution Programme as part of his statement to Parliament on energy initiatives. The purpose of the programme is to increase the number of retail service stations selling 10 per cent ethanol blended petrol (E10); increase the volume of E10 sold; and encourage the sale of E10 at a lower price than regular unleaded petrol. The programme provides grants of up to AUD 20,000 for retail service stations to reduce the cost of installing or converting infrastructure to supply E10. An Infrastructure Upgrade Grant of up to AUD 10,000 is available for service stations that upgrade existing equipment or install new equipment to provide for the sales of E10. The work must be completed between 1 October 2006 and 31 March 2008. A further Sales Target Grant of up to AUD 10,000 is available for those retail service stations that have upgraded their site and that have reached a specified E10 sales target within 12 months of completing the upgrade. AusIndustry within the Department of Innovation, Industry, Science and Research administers the program on behalf of the Department of Resources, Energy and Tourism, which has policy responsibility for the program.

The Infrastructure grant application period ended on 31 March 2008. Infrastructure grant recipients that were eligible for the Sales Target grant could apply for it until April 2009.

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