Strong oil prices to drive biodiesel expansion: ARF

AUSTRALIAN Renewable Fuels is looking to rapidly accelerate its expansion plans once its first plant is operational as higher oil prices have seen production commitments in Australia rise much faster than expected even six months ago.
Strong oil prices to drive biodiesel expansion: ARF Strong oil prices to drive biodiesel expansion: ARF Strong oil prices to drive biodiesel expansion: ARF Strong oil prices to drive biodiesel expansion: ARF Strong oil prices to drive biodiesel expansion: ARF

The complexion of the Australian biodiesel industry has changed significantly in the last half year due to the jump in oil prices, chief executive and managing director Darryl Butcher said in ARF's half-year report.

"The company is aware of more than 450 million litres of annual capacity that is reported to be either under construction or in operation," Butcher said.

"Consequently, ARF's expansion strategy is being reviewed with a view to a rapid acceleration once the Adelaide plant is operational.

"A number of initiatives are being actively pursued while still maintaining our primary focus on establishing our first two operating plants."

In November, ARF announced the capital cost and time schedule for its Adelaide plant and a second at Picton in Western Australia had been set back by the difficult construction climate.

The Adelaide plant is still in the latter stages of commissioning, representing a further delay in the project's completion.

Butcher said most of the operating staff required for both plants had already been engaged.

He expected local off-take agreements to be announced for both plants in the near future.

EnvironmentalManagementNews.net

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