Shortlist for Construction
September 30, 2008
Flex Fuels Energy considers shortlist for construction of oilseed processing and biodiesel plants
Flex Fuels Energy Ltd ('FFE' or the 'Company'), the oilseeds company focused on the food and biodiesel markets, announces an update of its plan for the design and construction of an integrated oilseed processing and biodiesel facility in the UK.
Highlights
- Positive response from prospective engineering, procurement and construction ('EPC') partners for construction of oilseed processing and biodiesel plants;
- Selection decision due October 2008, with a rigorous assessment plants' ability to meet carbon and sustainability standards;
- Selection decision to be based on prospective profitability and delivery of maximum value to shareholders;
- Demand remains high for premium-value rape oil for use in food processing and production;
- Company remains confident of long-term prospects for the biodiesel market and awaits the outcome of ongoing reviews of the UK and EU regulatory framework and targets.
FFE is reviewing a number of tender submissions for the design and construction of the proposed facility in Cardiff, South Wales, and is scheduled to announce its decision on the preferred EPC contractor early in October 2008.
Demand is high and expected to remain so for both premium-value rape oil for use in the food processing industry, and for sustainably produced rape meal for supply to producers of livestock feed. With these strong prevailing market conditions matched to an available feedstock supply, management is confident that the oilseed processing plant could be operated as a stand-alone unit pending greater clarity in the biofuels market.
Rigorous carbon and sustainability standards will be applied to all oil-seed rape (OSR) feedstock, the raw material for the plant, to ensure class-leading performance under the carbon score calculator, which is an integral element of the Renewable Transport Fuels Obligation (RTFO).
The precise timing of construction of a biodiesel plant at the site, is being kept under close review by the Company due to influential developments in its markets, notably the publication of the Gallagher Review on the Indirect Effects of Biofuels Production (July 2008), and the continuing, so-called splash and dash export credits operating in the US – subsidies which, in the view of the Company, artificially distort the market for biodiesel.
Management of the Company, which collectively has substantial experience in the energy, renewables, construction and agricultural sectors, anticipates that after 2010 more certainty is likely to emerge in the market for biofuels in the UK and Europe, and that sustainable, carbon-reducing biofuels will be increasingly accepted for their essential role in the future of road transport.
Flex Fuels Energy is confident of the strength of its business model in any currently foreseeable circumstances, as its commitment to carbon efficiency and sustainability is based on the use of predominantly locally produced feedstock, from fully traceable sources, processed in an integrated plant, operating from a single site, using shared energy and resource facilities.
Brian Barrows, Chief Executive of Flex Fuels Energy, said: “It is most encouraging that a number of blue-chip technology providers have responded to our tender process with high-quality submissions. Their response affirms the strength both of the overall opportunity and of our strategy for fulfilling it.”
Graham Hilton, Non-Executive Director of Flex Fuels Energy, said: „I am pleased that the Company will be able to push ahead with such high-quality partners in the development of the Cardiff facility. This project will help to underpin a truly sustainable and efficient supply chain in the South-West of the UK whether the oil is used for food or fuel.”
Mr Hilton, who in separate roles is Chair of the Environmental Industries Commission Road Transport Fuels Group and a member of a number of renewable industry groups, added: “The development of the integrated plant would also put Cardiff in a strong position for biodiesel production, assuming Europe commits to its own co-production of quality food and fuel rather than the current subsidised imports.”
Flex Fuels has appointed Allerton Communications, a financial public relations consultancy, to advise on and help implement the Company's communications strategy.
Further information
Flex Fuels Energy Ltd
Brian Barrows / Mark Paulson
+44 (0)29 2050 4712
brian.barrows@flexfuelsenergy.com
www.flexfuelsenergy.com
Media enquiries
Allerton Communications
Peter Curtain / Jennifer Thomas / Beatriz Bailey
+44 (0)20 7812 6477
peter.curtain@allertoncomms.co.uk
Notes to editors
Flex Fuels Energy Ltd is a wholly owned subsidiary of Flex Fuels Energy Inc (NASDAQ OTCBB symbol: FXFL) and was established in December 2006 to develop a high-quality UK oilseed processing plant and associated biodiesel plant.
Detailed planning consent has been granted for the oilseed processing plant and outline planning permission for the biodiesel plant on 12.1 acres in Cardiff comprising two adjoining sites with direct dockside access.
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