FARMERS in northern Victoria are well on the way to building a biofuel distribution depot, after receiving a $230,000 State Government grant.
Lockmore Financial Services, which runs the Lockington and Elmore branches of the Bendigo Community Bank, hopes to have the distribution depot in place before next year's grain-sowing season.
It will be built at Gilmac Pty Ltd's hay processing plant at Goornong and service a wide area extending from Colbinabbin through to Girgarre, Rochester, Pyramid Hill and Serpentine.
Lockmore Financial Services chairman and farmer David Johnson said $450,000 would be required to build the fuel depot.
He said about $220,000 was needed in commitments from the local farming community.
Mr Johnson said a prospectus was being developed, which he hoped would be released within a couple of months.
The project is being driven by Bendigo Bank through its Community Energy Initiative.
Capital raising would be similar to the process taken to open the Lockington and Elmore branches of the Bendigo Community Bank.
Mr Johnson said the fuel depot would supply biodiesel, mineral diesel and E10 (a 10 per cent ethanol blend of petrol) to farmers in bulk.
The biodiesel would be supplied by Laverton-based BioMax, a division of Smorgon Fuels Pty Ltd.
Mr Johnson said the biodiesel uses juncea canola, some of which was grown locally.
"A lot of growers grew mustard last year," he said.
"If you get a dry spring and canola turns over, mustard hangs on."
He said local growers planted 5000ha of juncea canola last year but that was expected to have tripled this season.
"This just adds to the whole sustainability of farming," he said.
Bendigo Bank northwest Victoria regional manager John Sirolli said the Community Fuel Project was part of the bank's commitment to improving the prosperity of Australian communities.
Mr Sirolli said the bank partnered with communities to build local investment opportunities, provide an environmentally friendly renewable fuel and help communities create their own sustainable income stream.
