Caltex has announced the acquisition of Petro Fuel and Lubricants, a Caltex branded independent fuel reseller based in Toowoomba. Petro's service station network includes 11 sites selling Caltex E10 Unleaded, a blend of 10% ethanol and unleaded petrol.
"The acquisition of Petro reinforces Caltex's commitment to development of ethanol and other biofuel blends to help meet the Australian Government's biofuels target for 2010, as well as being good business for Caltex," said general manager marketing Mark Burrowes.
"Caltex's ownership of Petro gives us the opportunity to expand availability of E10 Unleaded in regional Queensland through Caltex-branded service stations supplied by Petro, building on the initiatives of Petro's former owners."
Caltex has also made the first public announcement of a supply contract for ethanol from a greenfield ethanol plant, the Dalby Bio-Refinery due for completion in mid-2007.
"Caltex's supply contract is a sign of confidence in the Dalby project and symbolic of our commitment to development of ethanol. It is the first time a contract has been announced for supply of ethanol from a plant yet to be constructed," said Mr Burrowes.
"While the volume and term remain commercially confidential, the contract will significantly assist the Dalby project and provide for Caltex's expanding E10 Unleaded market in South East Queensland."
Petro's network extends across South East Queensland at locations from Longreach to Goondiwindi via depots, truck stops and service stations. Petro also supplies a much larger network of independently owned Caltex-branded service stations.
Dalby Bio-Refinery Limited announced on November 8 it will commence Stage One construction of an ethanol plant, worth $54 million, near Dalby during the first half of 2006.
The first stage of the project will produce 40 million litres of ethanol annually while the full project will have annual production of a minimum of 80 million litres.