South Perth-based biofuels company Australian Renewable Fuels Ltd will provide an independent Australian fuel retailer with 53 per cent to 80 per cent of biodiesel produced in its new Adelaide plant under a new, 6-month contract.
The agreement, for the provision of biodiesel manufactured predominantly from tallow and other low cost feed materials, is for a volume of between two million and three million litres per month.
An Arfuels statement indicates that both parties see it as a pre-cursor to a longer term relationship.
The company, which has another biodiesel plant in Picton, also said that negotiations for further biodiesel sales were at an advanced stage.
This is the first large volume sale that Arfuels has concluded since the changes earlier this year in the fuel taxation legislation.
In other industry news, Perth-based biodiesel producer Mission Biofuels Ltd has announced its biodiesel process equipment supplier and technology partner, Crown Iron Works, has accepted the handover of the process building site from its Balance of Plant Contractor, Hexagon Tower Sdn Bhd, on Friday, six weeks ahead of schedule.