Ethanol plant shelved for lack of support

The development of a $120 million ethanol plant in Condobolin, in central western New South Wales, has been shelved.

The proponent, Agri Energy Limited, has announced a restructure and will not be going ahead with any of its development plans in Australia.

Instead, the company say it has decided to invest offshore.

The announcement, made through the Australian Stock Exchange, says the uncertainty of grain supply and lack of local support for alternative fuels drove the decision.

Company chief executive officer Wayne Turner has declined to comment on the restructure.

Approval for the plant at Condobolin had been expected to be announced by the NSW Department of Planning within weeks.

Lachlan Shire Council general manager George Cowan says the decision will devastate the local community and council.

He says the council had worked hard to make Condobolin an attractive location for the company to develop its new plant.

"Council supported it strongly. We have in fact discounted, quite substantially, contributions to infrastructure to try and attract the development to this council, versus some other sites that were talked about in NSW," he said.

"It was well supported and would be, should it be reinvigorated."

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