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/

Biofuels Corp. Says UK Biodiesel Project On Track
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UK: January 14, 2005


LONDON - Green fuel start-up Biofuels Corp. on Thursday said it is on track to bring Britain's largest biodiesel plant into full production later this year, which would be a timely boost for the country's biofuels sector.


Biodiesel has been gaining in popularity elsewhere in Europe for up to a decade but is only now beginning to make an impact in Britain.
"I believe we're in the right place at the right time," Sean Sutcliffe, the firm's newly-appointed chief executive told Reuters by telephone.

"Our top priority is to get our new 250,000-tonne-a-year plant at Teesside up and running by the middle of this year so we can produce the first biodiesel going into the north-east -- and potentially into Europe as well."

Biodiesel, produced from a variety of vegetable oils, is seen as an environmentally-friendly alternative or addition to regular diesel.

UK-based Biofuels Corp., which floated in London in June last year, refused to be drawn on the plant's cost, but industry estimates put the figure at between 21 and 25 million pounds ($40 to $47 million).

Sutcliffe said a sizeable amount of output will move to a nearby refinery owned by Dutch oil refiner Petroplus after it agreed to buy around 350,000 tonnes in a five-year deal -- Petroplus markets "Bioplus," a 95:5 blend of ultra-low-sulphur diesel and biodiesel.

The firm said it has also agreed a 30-year contract with Simon Storage, which will store and handle biodiesel near the plant at Teesside. Simon Storage is to invest 3.5 million pounds on tanks and facilities.

Teesside located on England's north-east coast is a key hub for Britain's energy and chemical sector.

"It's a good time to be doing this. I think that the market is showing a lot of appetite for this product because of the positive (commercial) environment and also because of the technical specifications the product has," said Sutcliffe, who until joining the firm on Jan. 10 was previously vice-president and managing director of new businesses at BG Group.

Glycerine, a type of alcohol, will also be produced at the plant.


EYES RAPE, PALM OIL

The company said it would be looking to process mainly rapeseed and palm oil at the new facility.

"It's a highly flexible plant in terms of feedstocks. We'll be able to use a combination of predominantly rapeseed and refined palm oil, but we can adapt ourselves to ensure that we have the best commercial mix," Sutcliffe said.

The EU is keen to see biofuel account for two percent of all fuels sales in 2005, rising to 5.75 percent in 2010.

($1 US = 0.5311 British Pounds)



Story by David Cullen


http://www.planetark.com/dailynewsstory.cfm/newsid/28996/story.htm


wilbs

It would be really handy to know what their profit margin on a litre of biodiesel is? With the 250Mill litres per year that could make some interesting sums. At 15p per litre they would make their entire market cap in the first year of production!!!

Biofuels gets a mention here. Interesting reading.

-------------------------------------------------------------------


New British biodiesel plant ready to roll
18 Jan 2005 14:01:36 GMT

Source: Reuters

By David Cullen

LONDON, Jan 18 (Reuters) - Britain's newest biodiesel plant, capable of turning recycled cooking oil and animal fats into fuel for cars, is due onstream in Scotland this spring, boosting output of the green fuel by up to 35,000 tonnes a year.

Its privately-held owner, Argent Energy, said the 15 million-pound ($28 millon) facility was already warming up.

"We've just started commissioning...there may be other plants in construction at the moment, but when this comes online -- which we hope will be mid-April or May -- it will be the largest in Britain," the firm's joint managing director Andy Hunter told Reuters on Tuesday.

"It will be larger than the total capacity of the rest of the UK for processing saturated fats into a quality diesel fuel and the largest of its kind in the world."

The London-based company said it is in talks with a number of transport companies interested in using the fuel.

The plant near Motherwell in Scotland is expected to be up and running a few months before green fuel start-up Biofuels Corp. brings its giant 250,000-tonne facility at Teesside in northeast England into use.

"When our plant comes online, we will effectively increase total UK capacity somewhere between four- and five-fold. Obviously, with Biofuels Corp. coming on, we should see another dramatic rise," Hunter said.

In 2004, Britain produced only 10,000 tonnes of biodiesel.

Biodiesel can be made from a range of vegetable oils including rapeseed, soy, sunflower and palm, but it can also be derived from animal fats, grease and tallow.

It is seen as an environmentally-friendly alternative or addition to regular diesel.

EU TARGETS SPUR INTEREST

Argent Energy said European Union targets on biofuel had helped help spur interest in the sector.

"If one looks at the moves both politically and economically throughout the whole of Europe, there's been a significant shift towards biofuels," the firm said.

As part of a range of measures drawn up in response to international agreements to reduce greenhouse gas emissions, the EU is keen to see biofuel account for two percent of all fuel sales in 2005, rising to 5.75 percent by 2010.

The reduction in the UK duty level on biodiesel by 20 pence per litre in April 2002 has also encouraged the firm and further expansion is on the cards.

"As soon as this Scottish plant is working and proven, we would look to build at least two more plants of similar size in the UK and we would expect those to come online over the next two-and-a-half to three years," Hunter said.

Earlier this month, UK renewable fuel maker Greenergy said it has submitted plans to build a 200,000-tonne per year biodiesel plant on England's east coast, with a view to bringing it onstream by mid-next year.

The Motherwell plant is expected to meet five percent of Scotland's diesel needs.

($1=0.5345 British Pounds)


http://www.alertnet.org/thenews/newsdesk/L18387154.htm


wilbs

Yes that is interesting. I know of a small operator near sheffield. He is simply a one man band getting a load of chip fat from local KFC's and chip shops. He filters it, adds additives and then sells it to local haulage and taxi firms. He makes about 20p per litre on his sales.

If BFC only make 10p per litre on their expected production of 250m litres then they'll be making 25m per year against their current market cap of 45m!

Looks like a good deal to me!

Si

Wilbs

You seemed to have spotted this one when it was down at 70p. What other shares do you rate at the moment?

Simon.

It def sounds a good deal tallsiii.

There is a 27.1p per litre duty derogation on biodiesel in the UK, ensuring it is competitive on the forecourts against petroleum diesel.
Well lets say they only make 10p per litre Once the second plant is up and running in late-2005/early-2006 the total biodiesel production will be up to 568 million litres. Thats 56.8m!!

wilbs

I gave them a ring yesterday and they sounded very confident that the plant would be finished by July this year. They have already secured 40% of their sales to one particular client. Though they didn't say who it was.

Just got this in my inbox from digital look.


Shells chairman made a brave statement yesterday when he said that global warming and global dimming were potentially disastrous for the worlds environment and that governments needed to make renewable and more environmentally friendly energy sources more economical, and suggested that as a result it was hard to imagine Shell doing business in the same way in 30 years time as it is now, but went on to state that this in itself was not a reason for the oil major to be frightened


Its good that the oil majors are now starting to realise the potential of renewable fuel and that how the enviroment is an important issue. It will be interesting to see if the goverment starts to push this forward at a quicker pace.

wilbs

wilbs - do Biofuels mix the biomass/ ethanol with conventional gasoline? ie although it is cleaner, the vast majority of the fuel burnt will still be carbon based?

This global dimming is a real shocker. As I understand it, scientists have been baffled that with global warming the planet has not heated up more (only 0.7 degrees this century). Now the answer for why that is so low, seems to be global dimming (whereby pollution obscures the heating up of the planet). To a certain extent the two cancel each other out. The irony is that if we use cleaner fuels, global dimming will reduce and the planet will heat up - the ice caps will melt and London will drown (and I live by the river).

Theres nothing like cheerful thoughts!

rgrds
gk

gallick,

hope this is of some help.



Biodiesel

Traditional diesel is produced from mineral crude oil. Biodiesel is produced from a variety of vegetable oils, including but not limited to rape, canola, soy, linseed, palm, coconut, mustard and cotton oils. It can also be manufactured from tallow oil and yellow grease (used cooking oils).

Biodiesel has emerged as a realistic and desirable alternative, or blended addition, to mineral diesel and is becoming an increasingly valuable contributor to the worlds response to greenhouse gas emissions. It has been in general pure use for the last 10 years in continental Europe. However, the majority of the UK biodiesel produced is expected to be used as a 5 per cent. blend with mineral diesel. As an additive to ULSD a blend of biodiesel will restore lubricity, lost due to the reduction of sulphur compounds, as well as adding environmental benefits.

Advantages of biodiesel include the following:
Negligible sulphur content;

Zero aromatic content (toluene and benzene);

Comparable energy and power content;

Flash point of 300oF against 137oF for mineral diesel;

Significant reduction in particulates (soot) and hydrocarbons;

70 per cent. reduction of carbon monoxide emissions in diesel exhausts;

Non toxic and biodegradable; it is fully degraded from a waterway environment within approximately 20 days; and

Significant lubricant characteristics enabling a reduction in wear and extended efficiency for injectors, for all engines using ULSD, hence resulting in lower maintenance costs


http://www.biofuelscorp.com/biodiesel.htm


wilbs

She is on the way up!! Don't stop baby!!!

Cheers for that wilbs. I suspect that with Blair pushing climate change up the agenda, BIO will get more media attention/newsflow

rgrds
gk

No problem gallick. I think all the parties will strongly be pushing it in their agendas. Well lets hope so.
wilbs

Been long since 7th Jan. Finally made a move. ;-))

Smokin !!!

Its on fire!! I would say that there will be an update soon cos it should not shoot up like this when the place aint even built!!
wilbs

Good volumes too. ;-)

I emailed biofuels on the 20th but never had a reply. They have not updated their website either of new photos of the development. They must be much more ahead than this?

http://www.biofuelscorp.com/photos.htm

wilbs

Hi Wilbs on another thread too, I see.

Your talk of writing to the company, also thoughts on SEO and ASC etc. Anyone know a website where you can easily check out major (i.e. notifiable) holdings. Always interested to know if the institutional boys are in yet with a big overhang from original placing, or whether they haven't started yet. Could explain alot of SP movement with no apparent trading or corporate rationale.

Topped up again today. Could be a little dangerous, since profit-takers could step in after this weeks rise, but I'm confident this is on a rising trend taking 6 month view. Projected PE is incedibly low.

rgrds
gk