Major Biofuels Producer on the Market

Posted Mark Sutton Industry News


The Biofuels Association of Australia says the proposed sale of the country’s largest biodiesel producer provided a rare opportunity for new entrants to enter the market.

Expressions of Interest have been sought for Australian Renewable Fuels Adelaide Pty Ltd and Biodiesel Producers Pty Ltd.

The assets include Australia’s largest biodiesel plant at Barnawartha on the NSW/Victorian border, along with another plant at Largs Bay, Port Adelaide.

There is also potential to purchase facilities at Picton in Western Australia.

The Barnawartha plant is a world class facility with a maximum capacity of 60 million litres.

It also has revenues of $50 million and an operating margin of $7.6 million (FY15), while Largs Bay has proven export capacity.

BAA chief executive officer Mark Sutton said he expected the plant would attract interest from both Australia and overseas.

“This is an international standard plant that is well positioned to take advantage of a recovery in oil prices,” he said.

Mr Sutton said importantly there was now regulatory certainty with a biodiesel excise to be introduced over 15 years to a cap of 50% of the full rate.

“Dumping from overseas producers has buffeted the industry in recent years, but this issue is now addressed with a full excise imposed on imported biodiesel.”

ARF is one of three biodiesel producers in Australia, with other smaller plants located near Newcastle in NSW and in Queensland.

There is currently supply in the market from these plants.

Interested parties can get further information from Korda Mentha’s Shirley Dong on 02 8257 3046 or sdong@kordamentha.com

Media Inquiries: Mark Sutton 0407 918836.