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/

I see where your coming from localsonly. My research suggested to me that with the 20p per litre off the duty the brokers forecasts should be revised up to about 60m profit in 2006 giving it a pe of 1. I have also kept an eye on DOO for a while, but didn't get in on it due to the lack of available information. Yesterday though, I couldn't resist any more and had to jump in. Today I am glad I did.

These two shares both have their relative merits. BFC obviously has been more thouroughly covered by the brokers, but DOO may well be better placed in the long run. If what I am reading about the demand for Biodiesel and the supply of crude palm oil is true, then there is likely to be a severe shortage of the later over the coming years. That is where DOO really will come into their own!!

tallsiii, thanks for the info, I was under the impression that the new BFC plant could take several types of bio oils so am I correct in assuming that palm oil is the most widely available? Also, i note that someone has posted that the directors have confirmed that the plant is still on track for a July opening, I might try to go up and have a look at it. also, do you know if the second plant has been commissioned?

I spoke to them on the phone about a month ago and they stated that they were on course for July. I asked them about the second plant, but they seemed unwilling to commit to saying anything about that. I am guessing they haven't got far with that one. I am really just investing on the basis of the first plant at the moment.

A visit to the factory sound's like a good idea.

Simon.

An article from Aug 2004. Not sure if it's been posted before:

Click here - Biofuels article

Nice piece, Bones.

Morning all
Have just joined the BFC train... Like the story... and more importantly de man is an Aussie:-)

They'll probably double then, Jules. ;-))

Regulatory Announcement

Go to market news section

Company Biofuels Corporation PLC
TIDM BFC
Headline AGM Statement
Released 14:07 02-Mar-05
Number 2500J



RNS Number:2500J
Biofuels Corporation PLC
02 March 2005


Biofuels Corporation plc (the "Company")

AGM Statement


Biofuels Corporation plc, which the Directors expect will become one of Europe's
largest producers of Biodiesel, today held its Annual General Meeting at 2.00pm
at its offices in Billingham, Teesside. At the AGM Field Walton, Chairman,
introduced the following statement to shareholders by saying:


"I am pleased to report that the Company is making good progress as it firstly
seeks to establish one of Europe's largest Biodiesel plant and thereafter, the
foundations of a leading Europe-wide business in the sector.


In recent months, we have taken significant moves in strengthening the
management team, ensuring that the Plant construction is on track, and towards
finalising funding arrangements. Today's announcement of an extension to our
existing Technology Licence arrangements with Energea both deepens our
relationship with this key partner, and reinforces our longer term strategic
options, as we look to capitalise on the continuing strong economic and
environmental drivers behind Biodiesel."



Key points:


Extension of licence arrangements with Energea

Illustrative twelve month operating profit estimated to be 14 million
(30 million before impact of hedging arrangements)

Timescale for development of the initial plant remains on track

Funding negotiations expected to be finalised shortly

Market for Company's products remains robust


Energea Technology Licence


The Company is pleased to announce that agreement has been reached with Energea
Umwelttechnologie GmbH ("Energea") to extend the Technology Licence, which at
present provides the Company with an exclusive arrangement in the UK for
Biodiesel production plants ("Plant") over 100,000 tonnes per annum capacity.
The key terms of this new agreement are:


- Exclusive arrangements independently covering France,
Denmark and Belgium. For each country, the Company is granted exclusive rights,
dependent on placing an order in that country within 2 years. This exclusivity
extends for 4 years from the placing of the first order, subject to commitment
to a second Plant within 18 months of completion of the first;

- Certain payments to maintain the exclusive licences may
be payable if the Company constructs a Plant in any of France, Denmark or
Belgium using technology not supplied by Energea; and

- In addition, the Company has, under a separate agreement
with Energea, agreed to the early issue of the remaining Company shares due to
Energea under the Plant construction contract entered into at the time of
flotation, amounting to approximately 551,000 shares, subject to admission to
trading on AIM.


Illustrative Financial Projections


The Company has completed a thorough review of the potential of the business
going forward. The assumptions underlying these illustrative projections are set
out under "Notes" below. Key issues are:

Revised assumptions for product prices to reflect prevailing market
conditions, and, in particular, a downturn in the glycerine market reflecting
the weaker market conditions currently prevailing.

Confidence that, now key design issues have been resolved, that, in
due course, consistent annual Biodiesel volumes of 262,500 tonnes per annum
should be achievable (a 5 per cent. uplift on the initial projected output).


The commodity hedge as described below


One operational Plant


Once the initial Plant is fully operational it is estimated, based on the
assumptions set out above and those listed in the "Notes", that the Company
could achieve an operating profit of up to 14 million before interest in a
twelve-month period. Excluding the impact of the commodity hedge, this figure
would be around 30 million.


To protect against downside risk from commodity price volatility a hedge was
taken out immediately after flotation in June 2004 to lock in a margin between
Ultra Low Sulphur Diesel (ULSD) and Crude Palm Oil (CPO). This runs to March
2007, covers 125,000 tonnes per annum of inputs and outputs, and is based on a
CPO MDEX price of $435/tonne and a North West Europe FOB ULSD price of $260/
tonne. Rapeseed oil prices were not hedged but were around 525/tonne at the
time of flotation. The impact of this hedge has been reflected in the statement
above on illustrative financial projections.


Project Progress


Work on the completion of the initial Plant continues as expected in line with
the statement issued on 1 February 2005. We are now more than 70 per cent
complete. The Company therefore still expects to have the Plant operational by
July, and to achieve consistent production by the end of September 2005. The
company expects 6 months of production in the year to March 2006.


Financing


Negotiations to ensure that the Company has adequate funding to complete and
operate the first Plant are progressing well with finalisation expected shortly.
As set out in previous statements this requirement covers additional capital
expenditure and working capital requirements, as well as the need for a prudent
level of working capital headroom.


Alongside discussions with Barclays, Biofuels existing bankers, the Company is
considering alternative sources of funding to ensure it secures the most cost
effective pricing and an appropriate capital structure for the Company.


Outlook


The environmental drivers that support Biodiesel production are, we believe,
becoming even stronger. This is underlined globally by the recent ratification
of the Kyoto protocol. In the UK, the launch of a consultation process on a
renewable transport fuel obligation is a positive step forward and the company
looks forward to active participation in this process.


As outlined in previous statements the business prospects remain underpinned by
present market prices for vegetable oils, which form the Company's main raw
material inputs, and for ULSD which is the key benchmark for setting output
product prices. Forward prices for 2005/6 are now around $370 /tonne for CPO
Malaysia, 500 - 520/tonne for rapeseed oil and $420 - $460/tonne for ULSD. The
Company expects the prices of these commodities to remain volatile.


The company remains focussed on the successful construction and full operation
of the initial Plant. Once achieved the Company will look to build further
Plants in the UK and Europe.


Contacts:

Biofuels Corporation plc Binns & Co. PR Ltd
Sean Sutcliffe, Chief Executive Paul McManus, Mob: 07980 541 893
Bob Green, Finance Director Peter Binns, Tel: 020 7153 1477
Tel: 01642 345 683


Illustrative Financial Projections ("Notes")



Once the initial Plant is fully operational it is estimated, based on the
assumptions, that the Company could achieve an operating profit of up to 14
million before interest in a twelve month period. Excluding the impact of the
commodity hedge, this figure would be around 30 million.


These calculations have been made after due and careful enquiry by the Directors
and are based on a number of assumptions about future revenues and costs and the
timing of commencement of the Plant operating to full capacity as set out below.
Such calculations are, by their nature, subjective and inherently uncertain and
no reliance should be made or placed upon them as they relate to a period some
time in the future. They do not represent forecasts and the actual performance
of the Company may be materially different. In particular, it should be
understood that the Company's results will significantly differ from those set
out above, which relate only to a single plant, as it is the Directors'
intention that investment is made in further Plants, which would require
material expenditure and which would significantly alter the Company's
profitability.


The above calculations are based on the following key assumptions:


General


* A significant proportion of the Company's revenues and costs are expected
to be denominated in foreign currency, principally US dollars and Euros. In
preparing the illustrative financial projections the Directors have
estimated exchange rates based on forward rates provided to them by their
bankers;


* The illustrative financial projections have been drawn up on the basis of
current UK accounting standards;


* No costs or revenues in respect of fair value adjustments to financial
instruments have been included;


* No charges in respect of fair value adjustments to share options or other
share based payments have been made;


Revenue


* Production of Biodiesel is assumed to be 262,500 tonnes per annum, being
some 5% higher than the initial output of the Plant, with all production
being sold at market or contracted rates;


* Sales prices are based on the Directors' estimates using either contracted
or forward prices or, in the case of sales to the EU, current market prices;


+ An assumption of $402/tonne for ULSD and $336/tonne for Crude Palm Oil
MDEX Malaysia, being the position in early February 2005;


* Biodiesel sales are assumed to be made in the UK (around 30 per cent.) and
the rest of the European Union (around 70 per cent.);


* Sales of glycerine and other by-products are based on the Directors' best
estimate of future prices taking into account expected changes in market
conditions;


Costs


* Raw material volume inputs and other costs of production are based on the
Directors' best estimates taking into account advice provided by Parsons
Brinckerhoff Limited and Energea;


* The cost of raw materials is based on the Directors' best estimates taking
into account current and quoted market forward prices with the vegetable
oils price based on quoted 24 month forward market rates;


* Other manufacturing costs and premises costs, eg. steam, compressed air,
nitrogen, power, freight, port charges, etc are based on agreed contracted
rates or, in the absence of agreed contracts, assumed at current market
prices;


* Other typical manufacturing operating expenses, eg. staff costs,
insurance, hedging costs, rates, travel, advertising, office and
administration costs are the best estimates of the Directors or quotes
received from potential suppliers;


* Of the total project cost of 28 million, the capital cost for the plant
is assumed to be 27 million with a useful life of 10 years. Depreciation is
charged on a straight line basis.



Other



This information is provided by RNS
The company news service from the London Stock Exchange

END




2004 London Stock Exchange plc. All rights reserved

I love it when a company sets it all out. Too few newish ones don't these days.

Still very long.

If I wasn't already so heavily into this company then I would have topped up when I posted that RNS. That would have been a really profitable day trade.

Balistic - up over 15% and still going. Incredible.

Hoping it can now do a DOO, gallick.

Jumping Jesuits .... make that 20%!!

Profit forecast for 2006 have been upgraded by 40%. So we could potentially get a 40% uplift in the share price!!

tallsiii - who's done the upgrade?

TIA

Thanks - Tallsiii

Makes me feel good about holding onto DOO even thought its off its high.

What a pair!

SD

plenty of press comment and well up pre market.

Covered a 1/3rd +124. Running the rest for now.

BFC themselves issued the upgrade on their previously issued forecast. This morning they made it up to 280 which is 40% up on the 200 they were at at the time the statement was issued.

Thx tallsiii.

Amn amazed this thread isn't a touch busier.