Manildra's Shoalhaven Starches Cancels Ethanol Plant Expansion in New South Wales

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Researched by Industrial Info Resources (Sugar Land, Texas)--Australia's largest fuel ethanol producer, Manildra Group (Auburn, New South Wales), and subsidiary Shoalhaven Starches Pty Limited (Bomaderry, New South Wales) have cancelled plans to expand their fuel ethanol plant in Bomaderry. Not only is the expansion not moving forward, but the company is also cutting production at the site, reducing construction, maintenance and production jobs.

The decision not to move forward with the expansion comes on the heels of the Australian government's announcement that it would not enforce the ban on unleaded gasoline that does not contain 10% more ethanol. The ban was to go into effect on July 1, 2012, but the premier of New South Wales, Barry O'Farrell, announced recently that the cabinet had agreed to not support the ban, because it would increase the cost of petroleum products in the country.

Plans were to invest some $300 million in the plant. Manildra had contracted Q&A Engineering (South Nowra, New South Wales) to install three new fermenters, which would have increased the plant's capacity from 126 million liters to 300 million liters per year.

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