A project that will convert sugar cane waste into ethanol has been given a $2.9 million grant from the federal governments Climate Ready program.

Ethanol Technologies Limited will develop the technology at the Harwood Sugar Mill, near Yamba.

By using waste products this project removes the food versus fuel issue from the ethanol debate, Page MP Janelle Saffin said. Ethanol Technologies Limited has the exclusive licence in Australia to use this technology developed by Dr Russel Reeves, which involves separating acid and sugars for ethanol from lignocellulosic materials.

The grant was the biggest offered in Australia and was one of 19 projects to included in the latest round that granted $16.4 million for technologies that will help combat climate change.

Its wonderful to see the Rudd Government supporting this cutting edge technology here in Page, with such great potential for value adding for the sugar industry. This project will not only help combat climate change, but boost the local economy by supporting local jobs in these tough economic times, Ms Saffin said.