[Biodiesel News] Caltex backs petrol companies on ethanol

Caltex backs petrol companies on ethanol

Ninemsn - Sydney,New South Wales,Australia

... "What we say is that the consumer needs to become comfortable with ethanol and biodiesel," he told journalists after addressing an investment conference in New ...

 

Australia's largest oil refiner Caltex says petrol companies are getting bashed unfairly over the slow shift towards ethanol-blended fuels.

 

Caltex chief financial officer Simon Hepworth said the petrol companies were doing what they could but consumers had yet to fully embrace alternative fuels.

 

"What we say is that the consumer needs to become comfortable with ethanol and biodiesel," he told journalists after addressing an investment conference in New York.

 

Mr Hepworth said market research conducted by Caltex showed that up to half of respondents were uncomfortable with trying ethanol in their cars because of the potential impact on seals in the engines of older cars.

 

"It's customer sentiment, they need to be convinced of the fact their car isn't going to be damaged in any way," he said.

 

Mr Hepworth said the farm and sugar lobbies were looking for more than was possible, saying there wouldn't be enough ethanol in Australia if all petrol was mandated to be the 10 per cent ethanol blend (E10).

 

"So it is a question of everybody sitting down and understanding the facts as to what is possible over the next few years," he said.

 

"The oil companies do get bashed, unfairly so.

 

"We are moving very strongly and vigorously towards meeting the government biofuels targets ... we will do so."

 

Earlier this month, the Service Station Association said Shell and Caltex were ignoring the push towards ethanol-blended fuels, with independent service stations heading ethanol promotion.

 

Mr Hepworth said Caltex's network of service stations carrying ethanol-blended fuel would be expanded to more than 100 by the end of this year, from more than 40 currently.

 

"We are on track to meet the government targets that the industry has agreed with the government for the blending of biofuel by 2010."

 

Earlier, addressing the Merrill Lynch Australia investment conference, Mr Hepworth said while there was a lot of debate about ethanol and biodiesel, Caltex believed it would be a relatively small part of the market.

 

Mr Hepworth also predicted that over the next 10 to 15 years demand would shift from gasoline to diesel, driven by changes in fuel specifications and car models.

 

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Posted by Vince to Biodiesel News at 9/22/2006 05:45:00 AM