BIOFUELS

Transfield buys big in biodiesel

PUBLICLY listed biofuels firm Australian Biodiesel Group briefly halted trading yesterday before ...

ABG said Transfield’s expertise in project management, infrastructure, engineering and dealing with government would provide significant benefits as the biofuels company continues to establish itself as Australia’s leading vertically integrated biofuels developer and producer.

Funds from the $17 million agreement have been earmarked for the acquisition of an Australian vegetable oil crushing facility and further investment in the North American biofuels market.

Details of the vegetable oil facility acquisition have not yet been released, although ABG says the purchase will enhance the security of its feedstock supply and ensure the company’s capacity to produce winter-grade biodiesel in commercial volumes.

ABG also announced it would soon release details of two new projects in North America, both of which will be similar in scale to its Narangba project in Queensland.

The Narangba plant is already under construction, with an intended capacity of 160 million tonnes per annum of ABG’s proprietary, high-cetane biodiesel.

ABG chairman Dr John Keniry said Transfield’s strategic involvement with ABG was a “tangible vote of confidence” in the strategy, direction and management of the biofuels company.

Transfield Investments chief executive Dr David Iverach has been invited to become a director of ABG.

Transfield’s stake in ABG will be provided through the issue of new fully paid ordinary shares between April and September 2006, with an option to take up an additional 7,855,855 shares, subject to ABG shareholder approval.

An exclusivity deed between the two companies states that Transfield may not acquire more than a 15% stake in ABG through the purchase of fully paid ordinary shares without written consent.

TOPICS:

A growing series of reports, each focused on a key discussion point for the energy sector, brought to you by the Energy News Bulletin Intelligence team.

A growing series of reports, each focused on a key discussion point for the energy sector, brought to you by the Energy News Bulletin Intelligence team.

editions

ENB CCS Report 2024

ENB’s CCS Report 2024 finds that CCS could be the much-needed magic bullet for Australia’s decarbonisation drive

editions

ENB Cost Report 2023

ENB’s latest Cost Report findings provide optimism as investments in oil and gas, as well as new energy rise.

editions

ENB Future of Energy Report 2023

ENB’s inaugural Future of Energy Report details the industry outlook on the medium-to-long-term future for the sector in the Asia Pacific region.

editions

ENB Cost Report 2021

This industry-wide report aims to understand current cost levels across the energy industry