CSR to increase Ethanol production for oil companies in North Queensland

Monday 4 August 2008

Recent news report noted that CSR the sugar producer in North Queensland will spend $17.8 million to raise its ethanol production capacity at its Sarina facility.

Citing strong demand by Australian oil companies for fuel grade ethanol, CSR said it would upgrade the distillery and convert all its production to 60 million litres a year of fuel grade ethanol. Currently, CSR produces up to 38 million litres of fuel ethanol and up to 22 million litres of industrial/beverage grade ethanol each year.

The company said it would now upgrade the distillery by installing a molecular sieve dehydration unit to convert all its production to 60 million litres of fuel grade ethanol. “This is a logical extension and important part of our strategy to further increase recurring earnings in our sugar business and improve our renewable energy capability,” CSR managing director Jerry Maycock said. “CSR has long experience in producing renewable fuel ethanol from molasses, a by-product of raw sugar production, which further enhances our ability to meet the exponential growth in the fuel ethanol market.”

While division CSR Ethanol has been producing ethanol since the early 1990s, its first major installation of fuel capability was completed in 2006. The company, Australia’s second largest producer of ethanol, said it was strongly positioned to develop its market position further. “Demand for fuel ethanol continues to grow strongly, particularly as awareness of its greenhouse gas abatement qualities increases,” CSR Sugar CEO Ian Glasson said.

“The nature of CSR’s ethanol process means that every litre of CSR ethanol produces less than half the CO2 emissions of petrol, with no impact on food prices.”

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