BP Australia to launch ultra low sulphur fuel

BP Australia said its ultra low sulphur diesel, due to be released for general use in July, cuts air polluting sulphur emissions by 90 %. The ultra low sulphur diesel will cost slightly more than conventional diesel.
But BP was not keen to follow the lead of Caltex in producing ethanol blended fuel.

Caltex announced a six-month trial of its E10 fuel blend. The move followed the federal government's announcement on April 11 of a 10 % cap on ethanol fuel, which can be made from grain or sugar cane trash.
BP spokesman Jamie Jardine said the company would not be reinstating its E10 trial in Brisbane -- or at least not yet. "We believe ethanol blended petrol will have a role to play in the petrol market in Australia," Jardine said.

But if Caltex's Cairns E10 trial is successful, a long-awaited ethanol distillery will likely go ahead at Mossman, north of Cairns. The $ 50 mm plant would be sited next to the Mossman Central Mill and would create up to 200 local jobs in the sugar-growing area.
The federal government has already put aside $ 4 mm in funding for the project.