South Perth-based renewable fuels company Australian Renewable Fuels Ltd has announced it has signed a heads of agreement with Queensland-based Transpacific Industries Group Ltd to form a joint venture to confirm feasibility of and develop a biodiesel production facility in Brisbane.
The facility, which represents the third of five plants to be rolled out by Australian Renewable Fuels by 2007, will replicate its Adelaide and Picton facilities and will be designed to produce 45 mega litres of biodiesel annually.
The project will be located adjacent to Transpacific's existing cooking oil facilities in the Port of Brisbane and, allowing for approvals and construction, is expected to be in production in the second half of 2007.
Australian Renewable Fuels managing director Darryl Butcher said the joint venture brought together two leading participants from complementary business sectors.
Tranpacific provides industrial services and total waste management solutions with a focus on the liquid and hazardous segments of the waste management market.
Last month, Australian Renewable Fuels signed an agreement with South Australian-based fuel distributor Dermody Petroleum for up to 45 million litres of biodiesel per annum with a guaranteed minimum volume component for a value of up to $250 million in revenue terms for the period of the contract.
The company also announced the opening of Australia's largest biodiesel plant at Largs Bay in South Australia last month and hopes to commence production on its second plant located in Picton, Western Australia this month.
At market close, shares in Australian Renewable Fuels were down 4 cent to $1.80.
