South Perth-based Australian Renewable Fuels Ltd will supply up to five million litres of biodiesel per year to Caltex Australia Petroleum Pty Ltd, after reaching a new agreement with the company.
The full text of a company announcement is pasted below
Australian Renewable Fuels Limited (ASX Code ARW) ("ARFuels") is pleased to advise that the Company has reached agreement with Caltex Australia Petroleum Pty Ltd to supply up to five million litres of biodiesel per year from each from its Largs Bay (South Australia) and Picton (Western Australia) plants to meet the growing diesel-biofuel blend demands of the Adelaide and Perth markets.
The agreement with Caltex marks a new phase in ARFuels operations and supports both the Federal Government's biofuels target and the SA and WA Governments' sustainability objectives. In SA, it also satisfies the targets in the State Strategic Plan.
ARFuels CEO, John Lillywhite, said that the Company was particularly pleased to be working with Caltex, a major supplier to many Australian city and regional markets.
The new ARFuels' agreement will allow Caltex to supply diesel blended with biodiesel to commercial customers in South Australia and Western Australia.
Biodiesel is a clean-burning fuel produced from renewable resources such as animal fats and vegetable oils. It does not contain petroleum. It performs similarly to fossil diesel, but with improved emissions performance. It is non-toxic and biodegradable.
Each of ARFuels' biodiesel plants can prevent the release of approximately 120,000 tonnes of greenhouse gases annually. This is kept from the environment by the use of equivalent energy created by use of much cleaner and renewable biodiesel.
