Subiaco-based Natural Fuels Ltd will downgrade the production capacity at its Darwin biodiesel project by up to 20 per cent as modifications are made, but the lower production rates are not expected to impact on the company's profits.
Natural Fuels, which listed on the ASX late last year, hold 50 per cent of the Darwin project in a joint venture, Natural Fuels Australia Ltd, with Babcock & Brown Environmental Investments Ltd.
According to an announcement from BEI, the company will improve its filtration systems after black particulates were noticed in the finished product, which BEI said were a consequence of unexpected characteristics of the palm oil specified and used.
The modifications are expected to be completed by the end of June.
A spokeswoman for BEI said the company did not expect the plant to make a material contribution to its profits this year, but short term production downgrades were typical in that type of contract.
The plant has a name-plate production capacity of 138 million litres per annum, and aims to operate at between 110 per cent and 120 per cent of that capacity after the adjustments, which Natural Fuels said in an announcement was typical of plants designed by technology providers Lurgi.