The main activity of Biofuels is the large scale production and exploitation of biodiesel and glycerine following the construction and commissioning of the initial plant.

Biodiesel is produced from vegetable oils and, as an environmentally friendly product, can make a significant contribution towards reducing green house gases and meeting Kyoto targets.



RNS's from BFC can be viewed at:

http://www.uk-wire.com/cgi-bin/index?search_type=3&words=bfc&go.x=17&go.y=8

http://www.biofuelscorp.com/

SD

Had done some calcs along those lines yesterday too. ;-) Took a bit more trading profit, now running the rest.

Does anyboody know if the palm oil they will use is grown using petrochemical fertilizers, and if the old rule of thumb that it takes a gallon of oil (fertlizers, tractors, etc) to make a gallon of biodiesel is accurate or way out?

I would like to know who will be the suppliers of the palm oil and who will transport it to the U.K.Does it have a long storage life...so BFS can hedge against price surges?What about the private company producing bio fuels that was mentioned.Are they up and running yet?

Maybe it's worth dropping the chief exec a line with all your questions Ethel/Crystal?

Price is going up again...looks cheap as it will no doubt go higher

Very strong finish after a flat day.........mostly!

I'd expect some weekend press so keep your eyes peeled.

Spoke to some guys in a hedge fund yesterday and they have accumulated large positions in DOO and BFC, They think this is the sector to be in now.
Bought some more today...
have a good weekend all

Thanks Jules - keep us posted if you hear more. Very difficult to read timing with these two in their current volatile state. All collateral info very welcome.

SD

Yeah...I spoke to my broker who advises me the same...BUY more of BFC and DOO

Only problem with hedge funds is they will be quick to dump when they feel the time is right, and then let Jules know afterwards :)

Late news



By Sarah Thompson
Of DOW JONES NEWSWIRES
LONDON (Dow Jones)--AIM-listed Biofuels Corp. PLC (BFC.LN) is looking to raise between GBP30 million and GBP40 million via a share placing, people familiar with the deal told Dow Jones Newswires Friday.
"The placing could be announced toward the back-end of next week, subject to meetings with investors which are currently taking place," one person said.
Another source added: "I'd say that at this stage, it's likely that closer to GBP30 million will be raised."
It is understood that U.K. brokerage Collins Stewart will handle the placing for the company.
In a trading update on Feb. 1, Biofuels, which is aiming to become one of Europe's largest producers of biodiesel, said work on its initial biodiesel plant is two-thirds complete and production should start in the third quarter of 2005.
The company said it required an additional GBP4.9 million funding requirement as a hedge against commodity prices.
A spokesman for Biofuels said: "Biofuels are exploring a number of options for fund-raising. A share placing is obviously an option considering the recent share price rise, but the company has not made a decision as yet."
Shares closed Friday up 5.9%, or 14.5 pence, at 258.5 pence.
-By Sarah Thompson, Dow Jones Newswires; +44-20-7842-9280; sarah.thompson@dowjones.com
(END) Dow Jones Newswires
March 04, 2005 11:54 ET (16:54 GMT)

Interesting Big Al. Quite a sizeable sum. I hope they can get north of 200p, but I expect 200p will be needed as sufficient discount to get the placing away. I would take the "exploring a number of options" with a pinch of salt personally. All told, a positive development I think.

Glad you've seen it, Bones. I'm no fundie so interested in your analysis.

It looks more of a rumour to me, at present, and the fact CSCS have been desperate to keep a lid on the rise this week makes me suspect they want it down to allow someone in cheaper. If it does go ahead, then I suspect it will be placed very easily indeed.

Pays to check news even after Friday's close! ;-))) Sad, but true

Since they want it, presumably, for positive expansionary needs, this has to be a positive move for mid to long term holders. They will have to put up a good case to convince the placees, which should be a good enough case for us to want to stay in and even add at any dip on the discounted placing - anyone expect a partial rights issue to be on the cards? - 'd be nice.

SD

AL, you are right it will be placed very easily indeed . Met someone this weekend who is quite happy to take at least 50% of the placing.....My eyes are still out on stalks:-)

From Saturday mail.......

BIOFUELS AIMING TO LIFT SPIRITS-investment extra by Brian O'connor

You could, of course stay at home and make your own diesel out of vegetable oil. This is the game plan at Biofuels Corporation which enjoyed some 'animal spirits' this week, soaring 53p to 258.5p to value it at 75 m.
The rise was on an 'illustrative projection' of 30 mill a year profits from its first factory. Since it could build 5 more plants, excited punters multiplied 30 m by 6 and rushed to buy.
The factory will not be built untill july. It needs funding, so a share issue looks imminent.
Diesel from vegetable oils is very costly and needs big tax breaks to be economic. Several firms already make it using rape seed oil.
Biofuels aims to use palm oil, which is cheaper but attracts flak from 'greens' over deforestation.
Diesel for cars is only allowed to contain 5% 'biodiesel' so the market is limited.
Biofuels could still be worth a punt. It has hired good managers, but competition abounds, so do no get overexcited. Running with the bulls is fun, but keep an eye on the exit.

Jules - interesting. Your messaging isn't activated - mine is! ;-))

Dailos - very true and thanks for spotting it. I've checked a few newspapers over the weekend and found little. Happy to run, but aware it's driven by newsflow.

Jules, this chap who will take 50% of a placing himself given the chance, is it because the price is favourable (eg 200p) or because it's worth having at any price? Whatever, it sounds like a good bullish phase is approaching. That's fine by me with my holding :)

Dailos - am puzzled by your statement "Diesel for cars is only allowed to contain 5% 'biodiesel'".

I thought EU and UK directives were aiming for 20% by 2008 or something, Who is limiting the biodiesel content currently? Don't think this is right. Please state source.

SD

stockdog
I aint got a f*cking clue! just copied and pasted an article sent to me as part of a roundup of weekend press stories, this one from Brian O'Connor by the looks of it.
Have reduced BFC holding, but still quite long.
d.