CSR Ethanol joined the V8 Supercars Championship Series at the weekend's Supercheap Auto Bathurst 1000 for the announcement of its role as the official fuel sponsor of the sport and of the CSR V8 Racing Green carbon offset program for the next three years.

The fuel to be used by the high performance V8 Supercars from the start of the 2009 season is E85, a blend of 85pc ethanol and 15pc unleaded petrol.

CSR Sugar chief executive Ian Glasson said every litre of E85 made from CSR Ethanol produces less than half the CO2 emissions than one litre of petrol.

The deal sends a strong message to millions of motorsport followers that ethanol is a fully viable petrol alternative for road cars.

"We are in the business of motorsport which will always rely on fuel as its main source of energy but it is time for us to set an example to the wider community to strongly consider ethanol as an alternative fuel," V8 Supercars Australia chairman Tony Cochrane said.

"If a fully engineered V8 Supercar can be powered by a majority ethanol fuel blend, we encourage all Australians to make the switch to an ethanol blend to help sustain the environment.

"Over time we believe that ethanol will become the fuel of choice and will be available at more retail outlets so we encourage everybody to start using ethanol in their everyday lives."