Renewable Fuels supplies to Wesfarmers Premier Coal

South Perth-based Australian Renewable Fuels Ltd has signed a supply agreement with Wesfarmers Premier Coal, to supply up to 1.5 million litres of biodiesel for the Premier Collie coal mine every year.

The full text of an Australian Renewable Fuels announcement is pasted below

Australian Renewable Fuels Limited, ASX Code ARW, ("ARF") is pleased to announce the establishment of a supply agreement with Wesfarmers Premier Coal.

ARF will supply biodiesel from its Picton plant to enable Wesfarmers Premier Coal to use a 10% blend of biodiesel in its mine operations. It is expected that up to 1.5 million litres of biodiesel will be delivered to the minesite each year.

ARF CEO, John Lillywhite said ARF was proud to be working with Wesfarmers Premier Coal. ARF appreciated the speed and professionalism of Wesfarmers Premier Coal in evaluating the benefits of incorporating a blend of biodiesel in their overall diesel consumption.

Wesfarmers Premier Coal is a part of the Wesfarmers Coal Division. Premier Coal operates a major open cut coal mine in Collie, Western Australia, and provides a significant portion of the fuel for the State's south-west integrated electricity grid.

This state-of-the-art mine is building a strong future in energy supply for Western Australians. With a vision to produce over five million tonnes per year, the company is committed to producing coal in a safe and environmentally sound manner.

Premier Coal is a signatory to the Australian Greenhouse Challenge Plus. Premier has reduced greenhouse emissions per unit production by 50% since 1994. Performance at the Premier Mine is a function of emissions from energy used in mining, coal processing and transport, and a contribution from spontaneous combustion.

Since 1994, Premier Coal has reduced unit emissions by 50% through a variety of initiatives including energy audits, changed mining practices and equipment, reduced haulage distances, higher efficiency motors and lighting control systems.

Wesfarmers Premier Coal General Manager, Patrick Warrand, said the use of ARF biodiesel will further reduce the amount of carbon dioxide produced at Premier through the reduction of use of Mineral Diesel in the mine operations.