Sugar cane is already used in Australia to make sugar for ethanol production, especially in Queensland where there is a long-established cane industry and 10 per cent ethanol petrol is widespread.

Proponents of agave say they are not trying to replace sugar cane as a source of ethanol, but their plant is an ideal fit for climates where cane does not flourish.

Australian company Ausagave says it has 10,000 agave plants in pots that are ready to be trial planted.

Ausagave's Don Chambers says he has been researching the cultivation of agave for the past four years, and he believes crops could produce between 10,000 and 16,000 litres of ethanol per hectare per annum.

His forecasts project an estimated cost of less than 40 cents per litre. This compares with 34c/L for molasses and 44c/L for sugar cane. He says sugar cane averages a yield of 9,500L per hectare per annum.

Mr Chambers says the plant is tough enough to survive temperatures of up to 50 degrees Celsius, making it ideal for Australia.

"It can grow basically in the desert," he said.

" We've been doing trials here in South Australia, and it doesn't die without water, it can withstand extremes of temperature, it wouldn't be as subject to storms like some of the crops like cane are.

"If you compare it with [sugar] cane and corn, it does have less operational costs and it can grow in very marginal land."