Isra-Mart srl:Australian Renewable Fuels targets market share following fund-raising effort

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Isra-Mart srl news:

Australian Renewable Fuels (ARF), a developer of biofuel projects, has raised A$5.6m (£3.5m) from a share placement and conversion of options, the company said today in a statement, laying the foundations for a major expansion drive.

The funding involved the successful placement of 180 million shares at a price of A$0.02 per share. The new shares rank equally with the company's existing ordinary shares.

The funds will be used for the implementation of various projects, with the main focus being on the rapid implementation of the firm's overall feedstock model, as well as a continued drive to improve market share in Australia.

ARF produces biodiesel at two plants – one in Adelaide, South Australia and another in Picton, Western Australia. Each has the capacity to produce 12.5 million gallons per year of high-quality biodiesel using an 80/20 blend of tallow and canola. Both plants are currently producing at rates exceeding 60 per cent of annual capacity.

They use a technology known as the Energea process, also used in Europe. ARF has an exclusivity agreement with Energea for the use of the technology in the Australasian region and parts of North America, including manufacturing rights. The firm also operates two plants in North America.

The Energea process is billed as one of the few processes in the world proven to turn High Free Fatty Acid feedstocks, such as tallow and waste vegetable oil, into renewable fuel.

Last month, ARF proposed to purchase Biodiesel Producers Limited based in Barnawartha, Victoria.

ARF is 23.3 per cent owned by green energy investment company Wasabi, which joined the Alternative Investment Market in December following a successful £4.9m IPO.

Wasabi has also recently taken 100 per cent control of Global Geothermal, the company behind the Kalina Cycle – a thermodynamically efficient power generation technology.