Previous Austrian initiatives for the protection of the environment (among others, manufacture and utilization of rape oil methyl ester and discontinuance of the production and sale of leaded petrol in 1993) are continued with the "Austroprot" project for the production of bio-ethanol from cereals and legumes. Under the plan, about 350,000 tonnes of these raw materials are to be converted annually into roughly 100,000 tonnes of bio-ethanol and 100,000 tonnes of protein fodder. The bio-ethanol is to be blended with petrol at the rate of 5%. A report is given of the proposals to be presented in this year's negotiations on market organization in respect of procurement of the raw material, which represents about a third of the current Austrian cereal surplus, and price formation. The desired total support per hectare of raw material production is considerably less than the costs of exporting cereals and the support for oil seeds in Austria. The Austroprot plant is designed on the dry milling principle. Process and quality of the bioethanol obtained are described.