BY IAN CROUCH

Muswellbrook Council has voted to support continuing talks about using ratepayers funds to back a proposed ethanol plant in the shire.

Biofuel company Ethtec already has approval for an $11.9 million dollar grant from the Federal Government for the pilot project, but a Chinese investor has pulled out of plans to provide the rest of the money.

Muswellbrook Council is considering providing a $10.4 million grant as replacement funding.

However, not all councillors are comfortable with the idea, with some questioning whether council should be spending ratepayers funds on a speculative project.

Biofuel company Ethtec wants to build an ethanol plant at Muswellbrook Picture; ethtec.com.au
Biofuel company Ethtec wants to build an ethanol plant at Muswellbrook Picture; ethtec.com.au