Australian government mulls elimination of ethanol research grants

May 1, 2008

In Australia, the federal government refused to rule out scrapping a $40 million program providing research grants for ethanol, pending review of the impact of ethanol on world food prices.

In the weeks leading up to the federal elections last November, Labor Party leader Kevin Rudd pledged $15 million toward second-generation biofuel plants, with a goal of making next-generation ethanol commercially viable by 2017.

The ruling Coalition government had proposed a $16 million program to support cellulosic ethanol research and promote biofuels education. The plan ran into opposition from the Australian Lot Feedersâ€™ Association over the use of food crops for biofuels feedstocks.

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Written by Jim Lane · Filed Under International, Research