16th Apr 2009 09:55
16 April 2009 AIM: GBF
GEM BioFuels Plc
("GEM" or "the Company")
Statement regarding Natural Fuel Limited
GEM BioFuels, the emerging Jatropha feedstock supplier to the global biodiesel industry, acknowledges the recent appointment of administrators by Natural Fuel Limited ("NFL"), a company with which GEM has an off-take agreement (the "Off-take Agreement") for 55% of its future production of crude Jatropha oil from its operations in Madagascar. According to a statement released by the administrators of NFL, they are "working with the board and management to look at options for the restructure of the company and its financial position".
GEM is currently in discussions with NFL with regard to the future operation of the Off-take Agreement which was signed in February 2008 and under which it was agreed that GEM would supply NFL with crude Jatropha oil as feedstock for its Singapore biodiesel facility. As GEM has not yet commenced production of Jatropha oil, and does not anticipate commencing production until later in 2009, the operational terms of the Off-take Agreement have yet to come into effect.
GEM will update the market in due course as to the outcome of the discussions with NFL.
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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