Posts Tagged ‘Biofuel’

ASX Company News: Aust Renewable Fuels Acquires Biodiesel Producers

Tuesday, April 5th, 2011

The Boards of Australian Renewable Fuels Limited (ARW) and Biodiesel Producers Limited (BPL) are pleased to announce that they have now signed formal agreements under which ARW’s wholly owned subsidiary (ARF Adelaide Pty Ltd) will acquire the business and assets of BPL for a consideration of approximately $25 million to be satisfied by: a working capital facility of not less than $12 million (which ARW will accept through a facility to be arranged by BPL); and the issue by ARF Adelaide of a promissory note with a face value of $13.65 million; and a onetime payment to the minority shareholders of BPL. ARW will purchase convertible notes issued by BPL with a face value of $17 million in consideration  for: the issue, subject to shareholder approval, by ARW to the BPL note holders of  5 year non-redeemable secured convertible notes with an aggregate face value of $13.65 million; possible additional payments, conditional upon the performance of the BPL biodiesel plant at Barnawartha, Victoria; and the payment of $1 million in cash.

ARW will offer to purchase the shares of the shareholders in BPL (other than those held by the BPL note holders) at a price of 7 cents per share, payable on or before 31 December 2011.  If all BPL shareholders to whom the offer is made accept the offer, ARW will pay a maximum of $2.8 million for the BPL shares. The BPL business and assets will be integrated into a combined operating structure, with ARW to clearly focus on optimising the current BPL business model and using the resources of the current BPL management team.

“This has been a very positive process for both parties” said Tom Engelsman, Chief Executive of Australian Renewable Fuels, “allowing us to jointly review the benefits for the industry as well as for the shareholders.  The growing focus in the Australian sector on renewable fuels is a very strong positive for the company, and will allow for us to better service the growing Australian market”. Andrew White, Managing Director of BPL stated that “in joining the ARW current structure, BPL will be able to bring very strong product and market benefits, as well as the strength of the management team.  The consolidated entity will allow for further expansion of the BPL market reputation, and hence should allow us to create an optimal service in the carbon reducing environment we face today”.

www.arfuels.com.au

http://www.traderdealer.com.au/fundamentals/arw

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ASX Company News: Mission New Energy Secures Chevron Biofuel Order

Wednesday, February 16th, 2011

Mission NewEnergy Limited (MBT), a vertically integrated biodiesel producer and one of the world’s largest Jatropha plantation companies, is pleased to announce that it has won a global tender by Chevron Technologies Ventures (“Chevron”) for the supply of Crude Jatropha Oil  into the United States.  As part of Chevron’s exploration into the long-term use of Crude Jatropha Oil as feedstock for the production of renewable diesel, Mission will initially supply Chevron with 3,000 gallons of Crude Jatropha Oil.

“We understand that upon successful completion of tests that Chevron is interested in long term supply agreements”, said James Garton, President Mission NewEnergy USA.  Securing non-edible “sustainable” biofuels feedstock has been identified by global energy majors as a key ingredient to future biofuels projects.

This Chevron announcement follows the string of Crude Jatropha Oil sales announced on the 22 October 2010, to one of Europe’s largest power companies for the use in energy generation, and on 15 December 2010 to a major European customer for use as a sustainable fuel.

“As one of the largest non-food, sustainable biofuels feedstock companies, Mission is well positioned to address the shortage of sustainable feedstock either for production of biodiesel, renewable diesel or as renewable fuel for power plants.  Non food feedstock grown on marginal land remains the key to sustainable biofuels” said Nathan Mahalingam, Group Chief Executive Officer, of Mission.

In the United States, the Renewable Fuels Standard requires the use of one billion gallons of biodiesel per year from January 2011, which would likely result in demand for over 1 billion gallons per year of feedstock material.  With increasing pressure on food supplies, Mission’s non-food based “Sustainable” feedstock is fetching a substantial premium above other biofuels and feedstocks.

The premium pricing for this deal is in excess of Mission’s recent Crude Jatropha Oil sales.   We believe that the continued premium increase for Crude Jatropha Oil can be explained by the global short supply of sustainable biofuels feedstock.

Over the next 30 years, the existing acreage currently under cultivation by Mission’s contract farmers is expected to produce an estimated 22 million barrels of sustainable non-food oil supply.

www.missionnewenergy.com

http://www.traderdealer.com.au/Fundamentals/mbt

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ASX Company News: Australian Renewable Fuels To Acquire Biodiesel Producers

Tuesday, January 25th, 2011

The Board of Australian Renewable Fuels (ARW) is pleased to announce it has signed a non-binding agreement with the Board of Biodiesel Producers Ltd (Barnawartha VIC) with regard to the acquisition of BPL by ARF.

The structure of the acquisition will be predominately based on a non-cash assumption of BPL’s existing convertible note debt (with a redemption value of $21 million) by ARF by the issue of ARF convertible notes on terms to be agreed, but with the payment and structure of the ARF notes linked to the future performance of BPL’s plant over a 5 year period.

ARF expects to complete the transaction without the issue of any further share capital at this stage. The BPL facility has a capacity of 60 million litres per annum, and is well positioned to service the East Coast market. The plant, built in 2008 and operational since that time, is a major supplier of product to various oil companies, as well as the regional market. The addition of the BPL plant will give the ARF overall group a production capacity in excess of 150 million litres per year, and excellent coverage of the main industrial areas of Australia, with the ARF plants (45 million litre capacity each) being located in WA and SA espectively.

“The acquisition of BPL is a major strategic progression for both companies” said Tom Engelsman, Managing Director of ARF “since it allows for the combined entity to fully explore the opportunities in the market place, not only with regard to the use of Biodiesel, but also in related areas of interest. The combination will also substantially enhance the human capital of the business, since both parties have strong and dedicated employees at the various sites”. Andrew White, Managing Director of BPL stated that “the combination will allow the excellent results of BPL to be leveraged across the ARF facilities, and will further allow for the strengthening of the brand which BPL has developed in the market place. I look forward to working with the ARF Board and Management to optimize all of the benefits of the merger”.

www.arfuels.com.au

http://www.traderdealer.com.au/Fundamentals/arw

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