http://www.planetark.org/dailynewsstory.cfm/newsid/20857/story.htm

Caltex begins Australian ethanol fuel trial

AUSTRALIA: May 21, 2003

SYDNEY - Oil major Caltex Australia Ltd (CTX.AX) yesterday announced 
a trial use of ethanol in petrol after an earlier effort to introduce 
the fuel additive failed under media claims it might damage car 
engines.

Caltex said its ethanol-blended gas would be available for six months 
at five service stations in Cairns, Queensland. Jeet Bindra, Caltex's 
managing director, said the trial was aimed at getting wider 
acceptance of the fuel additive.

The oil company denounced what it said was a marketing campaign in 
New South Wales, the country's most-populous state, to prevent 
ethanol use.

There have been Sydney media reports saying ethanol in petrol can 
damage car engines, even though the additive has been widely used in 
North America for decades, where it has won applause for cutting 
carbon monoxide emissions.

In February, the Australian arm of BP Plc (BP.L) axed Australia's 
first trial of a 10 percent ethanol-petrol blend.

Caltex, 50 percent owned by ChevronTexaco (CVX.N), said its ethanol 
blend will use ethanol produced by CSR Ltd (CSR.AX) from Queensland 
sugar cane.

Australia's sugar industry has pressed without success for the 
government to require use of fuels containing ethanol.

REUTERS NEWS SERVICE


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