Minister for the Environment, Dean Wells says five Caltex service stations in Cairns are trialling "E10", and in the past two months almost a quarter of their fuel sales have been the sugar byproduct.

The Queensland Environmental Protection Agency (EPA) has funded a survey of customer acceptance as part of the six-month trial, and Wells says the initial findings are promising.

"The first round of surveys has shown Cairns motorists have a greater understanding of acceptable levels of ethanol in cars, and are more likely to try the product," Wells said.

"In fact, almost 60 percent of respondents indicated they'd be willing to try E10," he said.

The positive customer response coincides with the release of a scientific report that shows E10 is cleaner and greener than ordinary petrol.

Wells said, "The EPA commissioned the CSIRO to 'peer review' a life cycle analysis report for CSR's existing Sarina Distillery and a proposed Burdekin Distillery."

"The CSIRO review confirmed that using E10 fuel (containing 90% petrol and 10% ethanol from Queensland sugar by-products) would reduce greenhouse gas emissions by about four percent compared with normal unleaded petrol," Wells said.

"In addition, E10 delivers other benefits including increased regional development and increased employment for Queenslanders."

"This is great news for Queensland cane farmers and the communities that depend on them," Wells said.

Wells said, "The Queensland Government has long supported the development of a biofuels industry, and through E10, Queensland is poised to position itself at the forefront of such an industry, firmly cementing our reputation as the Smart State."