MEDIA RELEASE From the Office of Minister for Industry, Tourism and Resources - Ian MacFarlane

25 May, 2007

$600 MILLION ETHANOL PROJECT AWARDED MAJOR PROJECT STATUS

Australia's biofuels industry received a significant boost today with Major Project Facilitation (MPF) status granted to Grainol Limited's bioethanol project in Western Australia.

Australian Minister for Industry, Tourism and Resources, Ian Macfarlane, said the $600 million project would create 250 jobs in the construction phase and 40 ongoing jobs during operation.

"Grainol will produce almost 400 megalitres of bioethanol a year from two new plants at Kwinana and Bunbury," Mr Macfarlane said.

"This project will see Australia expand its bioethanol production using leading European technology and skills.

"The two plants will help diversify the local economy and help Western Australian grain growers find new customers.

"As well as contributing to the growth of the Australian biofuels industry, the project will create valuable job opportunities in regional areas."

MPF Status will see Invest Australia assist Grainol Limited through Commonwealth and State Government approvals and help the company identify government programs which could be of assistance.

Between July 2002 and March 2007, Invest Australia played a verfied role in attracting or facilitating 357 projects valued at $55 billion, potentially creating 27,000 jobs and generating more than $12.5 billiion in export earnings.

[Invest Australia Contact: Mark Durrant 02 6213 7560]