Australian Renewable Fuels finalizes acquisition of domestic firm Biodiesel Producers
Australian Renewable Fuels Ltd. recently finalized its acquisition of fellow domestic firm Biodiesel Producers Ltd. (BPL), part of a plan to reinforce the company's offering and global position in the biodiesel market.
According to the firm, the investment was a strategic push for expansion, aimed at making it dominant in the Australian biodiesel market as well as the global biodiesel industry.
Under the terms of the deal, Australian Renewable Fuels will acquire BPL’s biodiesel processing facility in Barnawartha, Victoria, which yields 60 million liters of biodiesel per year from feedstocks such as animal tallow and waste cooking oil. The move is expected to raise Australian Renewable Fuels’ biodiesel capacity to 150 million liters per year.
The facility is also unique in its ability to process high free fatty acid feedstock, which will give Australian Renewable Fuels competitive and economic advantages over producers without the technology, it said.
The investment is also expected to make Australian Renewable Fuels the only national biodiesel producer in Australia.
Australian Renewable Fuels CEO Tom Engelsman said the investment provides the firm with a national footprint and operations to service the eastern Seaboard, South Australia and West Australia.
Engelsman said that strategically, the BPL acquisition makes Australian Renewable Fuels the most significant player in the country's biodiesel sector, positioning the company with improved overall supply options, enhancing its ability to supply major operating companies in Australia with a superior certified product that is consistent in both supply and quality.
Australian Renewable Fuels plans to use the acquisition to further its presence in the industrial, mining, and transportation sectors, it said, as these sectors are beginning to embrace biodiesel in Australia.
The country is making big leaps forward in renewable fuels, the company said, and even mining giants such as Rio Tinto are exploring the benefits of incorporating biodiesel into their domestic mining efforts.
The development of commercial-scale renewable fuels production plants marks a new stage in the growth of use of alternative fuels in Australia, the company said.
Financial terms of the acquisition were not disclosed.
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