“In October 2006, Piacentini & Son commenced buying biodiesel from Australian Renewable Fuels,” the biodiesel producer said.

“Based on outstanding operational results, Piacentini will now use this renewable fuel across their entire fleet … at no incremental cost to their business.

“Piacentini’s now have a 20% blend of ARF biodiesel in their diesel fuel and will purchase up to 8 million litres of biodiesel from Australian Renewable Fuels Picton over the next 12 months.”

Australian Renewable Fuels said Piacentini reported the biodiesel had given very positive results for economy, power and maintenance, and the mining and earthmoving company was now aiming to supply biodiesel into its operations based in the small towns of Gingin, Cataby and Eneabba north of Perth.

Meanwhile, Dalby Bio-Refinery has agreed to supply Caltex Australia with 30 million litres of ethanol annually for three years from a plant that has not yet been built.

The plant is to be sited in Dalby in the Darling Downs west of Brisbane and is now expected to start production next year.

The new contract incorporates the ethanol supply volume agreed under a much-smaller contract with Dalby Bio-Refinery that was announced in December 2005. At that time, it was said the plant would be producing its first fuel in mid-2007.

Caltex also has contracts in place with other suppliers for ethanol in existing New South Wales and Queensland plants.