Victoria could soon be home to a ground-breaking green fuel technology plant, with the announcement of a consortium formed between the Victorian State Government and a group of leading companies. The consortium - which includes Holden, Caltex, Veolia, Mitsui and Coskata - will investigate the viability of establishing Australia’s first ethanol plant capable of turning materials such as household rubbish and building waste into more than 200 million litres of ethanol a year. This ethanol will be blended into an alternative fuel known as E85; a mixture of up to 85 per cent ethanol and 15 per cent regular petrol. Holden energy and environment Director Richard Marshall said the consortium were committed to sustainable motoring through the development of renewable fuels that reduced greenhouse gas emissions and improved energy security. “Our vision is that this technology will, in time, cut Australia’s dependence on petrol by up to 30 per cent and make a major contribution to sustainable motoring and greenhouse gas reduction,” says Mr Marshall. He says Holden would introduce Australia’s first locally produced flex-fuel vehicles capable of running on the high-ethanol fuel, later this year. “We’ve always said we’d take a leadership position on bio fuels, and provide the vehicles to do that. We’re committed to having locally built Holden cars capable of running on E85 in the market by 2010,” he continues to say. “It’s about designing and engineering vehicles using Australian fuel alternatives.” Holden's leadership in alternative fuels in Australia is part of GM's global sustainability and energy diversity strategy. In the United States, GM is the leading producer of flex-fuel vehicles with more than 3.5 million E85-capable GM cars on the road today. Caltex Australia’s marketing GM Andy Walz said the company had signed an agreement with Holden which committed to installing pumps in 30 metropolitan and regional service stations later this year, increasing to 100 within 12 months. “Caltex’s expansion into this new fuel and participation in the consortium is part of our ongoing commitment to bio fuels and tackling climate change, which fits well with a strategy of providing energy beyond the traditional fuel mix," says Mr Walz.