25th Nov 2009 07:00
25 November 2009
GEM BioFuels Plc
("GEM" or "the Company")
Commencement of Commercial Jatropha Oil Production
GEM BioFuels Plc (AIM: GBF), the emerging feedstock supplier to the global biodiesel industry, today announces that it has commenced commercial production of crude jatropha oil ("CJO") and expects to make its first shipment of CJO early next month. Whilst the value of this initial shipment is expected to be relatively small, the achievement of this milestone represents a significant point in the Company's evolution and growth towards becoming a commercial supplier of low cost, sustainable feedstock for the global biodiesel industry.
Commencement of commercial production has enabled confirmation of a number of aspects of GEM's operational model, including:
the Company's logistical capabilities, and
the effectiveness of simple, cold press, screw expellers in producing high quality CJO,
both of which are critical factors in the future profitability of the Company's operations.
In addition to this, recent production oil yield from seeds was in accordance with that budgeted for in long term production forecasts.
First shipments of CJO, bound for Europe and Australia, are anticipated early next month where they will be used as straight vegetable oil fuel for power generation and as feedstock for biodiesel and chemical production. This diversity of customers and end uses of GEM's CJO product provides further evidence of the viability of, and outlook for, GEM's business by confirming the performance and commercial viability of our product in a number of different end user market segments.
Commenting on the announcement Paul Benetti, CEO of GEM BioFuels said: "The commencement of commercial Jatropha oil production is a landmark for the Company and follows several years of development and refinement of our owner/manager operating model. This production as well as the higher than forecasted yields derived confirm the efficiency and effectiveness of the model. These yields as well as the introduction of some cost-reducing mechanisation in the plantation season, and GEM's years of experience, position the Company well to continue its strategy of combining low-cost, sustainable agriculture with social responsibility to be a major future grower of Jatropha."
Enquiries
|
GEM Biofuels Plc |
Shore Capital and Corporate Limited |
Walbrook PR Ltd |
|
Paul Benetti Chief Executive Officer |
Dru Danford / Stephane Auton |
Louise Goodeve / Leah Kramer |
|
+61 (0) 8 6365 3038 / +61 (0) 407 039 379 (mobile) |
+44 (0) 20 7408 4090 |
T: +44 (0) 20 7933 8780 |
NOTES TO EDITORS
About GEM BioFuels
GEM BioFuels was founded in 2004 to capitalise on the opportunity presented by the local agricultural and socio-economic conditions in Madagascar to produce Jatropha oil for use as a biodiesel feedstock. Operations are based in the South of the island where the Jatropha tree grows wild.
The Company has secured 50 year agreements giving exclusive rights over 452,500 hectares (in excess of 1 million acres) to establish plantations, ranging in size from 2,500 - 50,000 hectares with a further 40,000 hectares of natural forest containing substantial numbers of mature Jatropha trees.
GEM BioFuels Plc was admitted to trading on AIM in October 2007.
Jatropha
Jatropha is a small tree/shrub, growing to about 5 metres in height and is well suited for use in the production of biodiesel. Jatropha trees are relatively drought resistant and suitable for cultivation in sub tropical regions. The high oil yielding seeds are mildly toxic and as such Jatropha is not a food and its use in biodiesel production does not affect the cost of living of the indigenous population. Biodiesel refined from Jatropha oil complies with international standards, including EN14214 in Europe, the major market for biodiesel.
Whilst the current production of Jatropha seed for commercial purposes is small, it is substantially increasing due to its attractiveness as a biodiesel feedstock because of its ability to grow on marginal land and the fact that it is non-edible and so does not fall foul of the 'food versus fuel' debate.
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