Australian Renewable Fuels Limited acquires Biodiesel Producers Limited

29 January 2011
Published in Invest in Australia

Australian Renewable Fuels Ltd acquired Biodiesel Producers Ltd (BPL) as it seeks to reinforce its offering and global position in the biodiesel space. According to the firm, the investment was a strategic push for expansion aimed at making it dominant in the Australian biodiesel market, as well as the global biodiesel industry.

Under the terms of the strategic acquiring, Australian Renewable Fuels will acquire BPL’s biodiesel processing facility in Barnawartha, Victoria, which yields 60 million liters of biodiesel per year from sources like animal tallow and waste cooking oil. The move is expected to increase Australian Renewable Fuels’ biodiesel capacity to 150 million liters per year.

The facility is also unique in its ability to process high Free Fatty Acid feedstock which will give Australian Renewable Fuels competitive and economic advantage over producers without the technology. The investment is also expected to make Australian Renewable Fuels the only national biodiesel producer in Australia.

Australian Renewable Fuels Chief Executive Officer, Tom Engelsman, said the investment provides the firm with a national footprint and operation to service the Eastern Seaboard, South Australia and West Australia. Engelsman further noted that strategically, the BPL acquisition catapults Australian Renewable Fuels into being the most significant player in the biodiesel space, positioning the company with the improved overall supply options, enhancing its ability to supply the major operating companies in Australia with a superior certified product that is consistent in both supply and quantity.

Australian Renewable Fuels plans to use the acquisition to further its presence in the industrial, mining and transportation sectors, as these sectors are beginning to embrace biodiesel in Australia. The country is making big leaps forward in renewable fuels, and even mining giants Rio Tinto are exploring the benefits of incorporating biodiesel in Australia. The country is making big leaps forward in renewable fuels, and even mining giants Rio Tinto are exploring the benefits of incorporating biodiesel into their mining efforts down under.

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

Australian Renewable Fuels Limited is an Australia- based biodiesel producer. The company is principally engaged in the operation of the 44.5 million liters per annum biodiesel plant in Picton, Western Australia.

As of June 30, 2010, the Company could produce a total of 150 million liters of biodiesel per year from its plants in Adelaide and Picton. Its customers include Westfarmers Premier Coal and Caltex.