Picton plant deal up for Amadeus

AMADEUS Energy’s 67 per cent subsidiary Australian Renewable Fuels Limited has completed a $16 million capital raising to fund its second biodiesel plant to be built near Bunbury.

ARF is also gearing towards its own float on the Australian Stock Exchange in early 2005.

The placement, of non interest bearing convertible notes, was made to institutional investors and sophisticated clients of Shaw Stockbroking.

Work on the biodiesel plant, to be built at Picton, will start in March.

ARF’s first biodiesel plant, located at Largs Bay in Adelaide, has already begun with production due to start in November 2005.

Combined production from the two facilities is expected to be about 90 million litres of biodiesel a year.

The ARF plants are based on proven technology supplied under licence by Energea.

The company plans to roll out additional plants in line with the continued growth of the biodiesel market in Australia.

It won a $7.15 million grant from the Federal Government under the Biofuels Capital Infrastructure Grant for its Adelaide plant.

ARF is expected to seek to raise $15 million through its listing and has appointed Shaw Stockbroking to underwrit the issue.

Part of the offer proceeds will be used to replace a finance facility provided by Amadeus.