Growers call for ethanol target to be increased

SUGAR and grain growers want a Queensland Government biofuels bill to at least double the proposed minimum 2% ethanol content in petrol.

The Liquid Fuel Supply bill would require a minimum of 2% of ethanol in petrol and 0.5% in diesel sold in Queensland.

Speaking in a parliamentary committee on Wednesday, representatives from the Australian Sugar Milling Council, Canegrowers and AgForce Grains said the target was too low and would not lead to increased investment in the industry.

Australian Sugar Milling Council chief Dominic Nolan said the proposal was "unlikely to deliver new projects".

Similarly AgForce Grains president Wayne Newton said growers and ethanol plants could already meet the proposed target.

"It will not increase new jobs. It will not stimulate regional economies," he said.

"A clear pathway to increase production should be spelled out."

Mr Nolan said he believed an 8-10% target over a period of years would drive investment in the industry. - APN NEWSDESK