Queensland is a step closer to laws requiring petrol companies to put ethanol in fuel.

The state government released a discussion paper on mandating ethanol in fuel on Thursday.

Energy Minister Mark Bailey says the economic and environmental benefits of ethanol are recognised worldwide.”We want Queensland to be part of this sustainable energy solution,” he told parliament.

“We will work closely with industry on the amount of the mandate so that it grows in line with production capacity.”Mr Bailey said the government wants to ensure local industries provide the ethanol in Queensland fuel.

He said Canegrowers and the Australian Sugar Milling Association have expressed keen interest in a mandate.RACQ’s Michael Roth said the motorist group would also support a 2.0 per cent mandate.

Mr Bailey said there was an opportunity to boost the use of biofuels like biodiesel blends in fuel.He also reassured drivers that under an ethanol mandate regular unleaded petrol would still be available at petrol stations.

“If drivers don’t want to use ethanol fuels, they won’t have to,” he added.

Extracted in full from News.com.au