Highlights for the quarter included the successful $A12.45 million capital raising through placements with professional and institutional investors.
AAE said that increased institutional investor support indicated strong support for the company’s business plan, which is currently focused on gaining greater access to the established US biofuels market and gaining operating experience that will give the company a strategic advantage within the domestic market.
The company has chosen two proven technologies for its biodiesel and ethanol interests during the quarter:
AAE had originally planned to begin site works for the Swan Hill plant in June 2006, but has delayed the project pending applications for infrastructure support from all levels of government.
The company said it had been advised that any work started at the site could jeopardise the applications process, so it terminated its agreement with Multiplex for construction rights at the site. Multiplex agreed to a non-cash settlement in the form of 800,000 ordinary shares in AAE.
AAE has not yet secured offtake agreements for the proposed Swan Hill project, but said it was encouraged that its negotiations with fuel retailers showed a growing trend for long-term agreements, indicating continuing support for the industry.