Sarina distillery upgrade planned

Sugar manufacturer CSR has announced it will spend $17.8 million to increase its ethanol production capacity to 60 megalitres (ML) per annum, to match strong demand by Australian oil companies for fuel-grade ethanol.

The ethanol extraction process will produce less than half the CO₂ emissions of petrol per litre, with no impact on food prices, managing director Jerry Maycock said in a statement.

"This is a logical extension and an important part of our strategy to further increase recurring earnings in our sugar business and improve our renewable energy capability," he said.

"This project further enhances our ability to meet the exponential growth in the fuel ethanol market."

Currently, CSR produces up to 38 ML of fuel ethanol and up to 22 ML of industrial-/beverage-grade ethanol at its Sarina distillery each year.

Project construction is expected to commence in November 2008 with completion scheduled by June 2009.