Local superannuation fund SANT topped the coffers up to $21.65 million by committing $6 million in equity for a 33% share in ARF. SANT increased its commitment from $4 million after the WA Local Government Superannuation Plan withdrew its previous commitment of $2 million.
Previously Amadeus agreed to provide $2 million in equity funding, the company’s Texas banker Wells Fargo also arranged $6.5 million in debt funding and the Australian Federal Government approved a $7.15 million grant under its Biofuels Capital Grants Program for the project.
This first ARF plant will be located at Birkenhead, Port Adelaide and will be the largest producer of biodiesel in Australia at 45 million litres a year when producing at full capacity. At present biodiesel production worldwide is reported to be 3.5 billion litres a year.
The Adelaide plant will use a combination of tallows and used cooking oils as feedstock, purchased though an exclusive agreement that has been established with Gardner Smith Pty Ltd.
“Following completion of the Adelaide project ARF has planned to establish the next plant at Picton near Bunbury, Western Australia. The company recently agreed the purchase of land for this project near the inner harbour with the South West Development Commission by way of a state government loan (converting to a grant) of $650,000 that will cover the full purchase price of the property,” said ARF.
This plant has also been the recipient of a federal government grant of $530,000 under the Dairy Regional Adjustment Program. The ARF plants will be based on technology supplied under licence by the Austrian biodiesel producer Energea. ARF has negotiated exclusive rights to build Energea plants in the Australian Region.
“ARF has also reached agreement with a major European-based commodity trading company to sell up to 120,000 tonnes per year of biodiesel into the European market. This agreement is exclusive to ARF, precluding the commodity trader from purchasing biodiesel from any other producer in the region and has a five-year term with an option of a further five-years,” said ARF.
