KAP pledge for biofuels

NORTH Queensland Bio- Energy Corporation has welcomed a $ 400 million election promise from Katter’s Australian Party but has remained sceptical about the likelihood of a proposed loan.

Speaking opposite Queensland Sugar Limited’s sheds at Port of Townsville yesterday, KAP state leader Robbie Katter and Hinchinbrook candidate Nick Dametto said the announcement was a long time coming.

The party has pledged to loan the controversial biofuels project $ 400 million if Mr Dametto was successful in his seat and KAP holds the balance of power.

The $ 640 million project – initially proposed almost 10 years ago – would use sugar cane bagasse to generate renewable energy.

Chairman Robert Carey said that “if in fact” the loan could happen and was capable of being achieved, then the announcement was a “good thing”.

“It makes it more viable,” he said. “I think it’s great for the project.”

The project is waiting for a final ceiling price from Engineer Procure and Construct, which is due by January 16.

Once operational, the facility would produce about 430,000 tonnes of raw sugar for export each year and 60 million litres of fuel grade ethanol per annum.

The State Government granted the project a $ 1.17 million loan in July.

Mr Carey said construction was expected to start following the wet season. Mr Katter said the project would lead to thousands of jobs.

“It will provide cheaper energy and give us another market for our sugar cane use,” he said. “The NQBE project now has a champion in North Queensland.

“There’s a lot of rhetoric from governments about the ethanol mandate.

“There’s been a lot of rhetoric about getting projects going but nothing happens.”

Mr Katter said the low interest loan would cost taxpayers nothing.

“We’ve got a project that will create jobs for forever more and we can make that happen if elected in Hinchinbrook and in the balance of power,” he said.

“We’ve been waiting for 10 years for this to happen.”

Mr Dametto acknowledged there was community divide over the project.

“There are some who want it,” he said. “Some people don’t want it. “This will give jobs for now and into the future – it’s cutting- edge technology.” people