Company Information for Australian Renewable Fuels Limited

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Company Statement

ARFuels
Australian Renewable Fuels Limited is an Australian company currently producing biodiesel at two plants - one in Adelaide, South Australia and another in Picton, Western Australia. ARF is now in its third year of operation and produces biodiesel meeting the strictest biodiesel standards worldwide.

The development of commercial scale renewable fuels production plants marks an exciting new stage in the growth of use of alternative fuels in Australia.

ARF Limited was founded by parent company Amadeus Energy Limited in May 2001.

ARF Limited's vision is to become the pre-eminent Australian biodiesel producer by managing a planned roll-out of biodiesel plants within Australia. The Company's expansion program includes the establishment of biodiesel plants overseas.

The technology to be used in its plants is the proven Energea process, currently operating in Austria. ARF has an exclusivity agreement with Energea for the use of the technology in the Australian region, including manufacturing rights.

Operations and Technology

ARF Facilities
Construction of the biodiesel plants were completed in 2006.  ARF can produce 44.5 million litres of biodiesel per year at each of its facilities using low-grade tallow.  By-products include 4,000 tonnes of raw glycerine and 1,200 tonnes per annum of sulphate of potash fertiliser in paste form.

Biodiesel is in commercial production in countries world-wide because of its low emission levels and other environmental benefits. World production of biodiesel is about three billion litres per annum.

Plant Operation
Both production facilities are now capable of running at design capacity with good mechanical reliability on the cheapest of feedstocks, including Used Cooking Oil and Tallow.  Company personnel have further optimised and developed the Energea process that now produces excellent conversion, yield and no environmental discharges.

The expertise and passion of ARF personnel ensure continuous improvement and Research & Development keep ARF Limited in its position amongst the most efficient producers in the world.

Supply of raw material
ARF Limited has an exclusive five-year feedstock (fat or tallow) supply agreement with Gardner Smith, Australia's market leader for the delivery and storage of fats.

The agreement encompass South Australia and Western Australia. For each plant, Gardner Smith has agreed to provide feedstock up to the plant design capacity per month on a cost-plus basis. Gardner Smith has a global network of offices spanning Australia, New Zealand, Singapore, China and South Africa.

This arrangement gives ARF Limited access to not only domestic fat supplies but also regional supplies from New Zealand, Indonesia, Malaysia and some South American countries.

Alternative sources of raw material
Whilst tallow remains the current feedstock of choice, ARF Limited is investigating new sources of supply. It is funding research in South Australia through the South Australian Research and Development Institute (SARDI) to investigate the potential of an oilseed crop specifically for biodiesel production and another program to investigate oil production from algae. ARF wants national commercial exploitation rights to any intellectual property that results from this research. Early results have been encouraging. ARF has a research and development expenditure policy that dedicates half a cent from the sales proceeds on each litre of biodiesel to further research work. This policy results in a committed research and development budget at full production from both plants of approximately $0.45 million per year.

Biodiesel sales
ARF Limited sells wholesale biodiesel into the Australian market, to trucking, earthmoving, bus and fuel retailers.  Current customers include Caltex and Gull.  Additionally, ARF Limited is negotiating with other retail fuel distributors, train operators, truck fleet operators, the marine industry and local government, both in South Australia and Western Australia to fill its plant capacity.  It is also holding sales discussions with major oil companies regarding biodiesel as a lubricity agent and as a blend.

Quality control
ARF Limited is strongly committed to the highest standards of quality control. It uses the services of one of the world's most respected petroleum and related products quality assurance companies . This German company is accredited for its expertise in the analysis of diesel fuels, heating oil, biodiesel and vegetable oil fats and is well known among European motor fuel producers, automobile manufacturers and allied organisations. ASG has an established presence in all ARF manufacturing facilities. All biodiesel supplied by ARF Limited complies with the Austrian Biofuel Standard, acknowledged internationally as the local benchmark for quality.  ARF Limited has not had a single quality related incident with its biodiesel in over 12 months of use by major customers. 

Geographical Spread

Photo shows ARF Picton Plant - Western Australia

Additional plant Adelaide, South Australia

Board of Directors and Key Management

The Board of ARF Limited comprises three directors:

Robert Scott - Non-Executive Deputy Chairman

Glyn Denison - Non-Executive Director

Geoff Towner - Non-Executive Director

The Senior Management of ARF is comprised of:

Max L Ger - Chief Executive Officer & Chief Financial Officer (Australia) - ARF Ltd

Ross Garrity - Chief Executive Officer - ARF Inc. (USA)

Company Address Suite 1B, Level 5South Shore Piazza85 South Perth Esplanade SOUTH PERTH, Western Australia, Australia WA 6151 Telephone: (08) 9363 3500 Facsimile: (08) 9363 3511 Email: lkyle[at]arfuels.com.au Website: http://www.arfuels.com.au

Additional Address/Key Contact General communications National Sales and Marketing Manager Terry King Largs Bay, South Australia. Phone: 0438 049 093 Fax: (08) 8242 8626 Email: tking@arfuels.com.au

Related News

24/07/07 - Australian Renewable Fuels Secures 2007 Growth With New Contracts

Most Recent Statement

22/06/09 - Change in substantial holding from AMU
19/06/09 - Change to structure of Offer
05/06/09 - Revised Appendix 3B - Renounceable Rights Issue
04/06/09 - Renounceable Issue
29/05/09 - Appendix 4C - April 2009
14/05/09 - WAS: Acquisition of Debt