The fundamentals for the biofuels sector remain strong. Global Warming and Climate Change dominate the news. Legislation intended to mitigate CO2 emissions has been enacted, or is about to come into force, across Europe.

Subsidy and penalty regimes designed to incentivise the use of carbon-friendly biofuels have resulted in premium prices which are anticipated to prevail for the foreseeable future, with demand expected to outstrip supply in the longer term. The sector, particularly biodiesel in the European Union, is highly receptive, with the UK in particular set to embrace the product.

Flex Fuels sees its BioDiesel market as the efficient supply, in large quantities, to local refiners and blenders and the sale of B100 (pure) BioDiesel to individual heavy users seeking to reduce their carbon footprint and demonstrate their green credentials.

Equally important is the marketing of OSR Cake, our Crush Plant co-product. There is an established and buoyant demand for OSR cake in the animal feed market, its natural properties making it an excellent feed for cattle and other animals.

The U.K. also has a highly incentivised renewable electrical generation market. As part of this incentivisation the burning ("firing") of Biomass to generate electricity is highly supported by the Renewables Obligation (RO) under which tradable credits (ROCs) are generated.

Subject to OFGEM approval, our co-products will qualify as a suitable energy crop biomass for electrical generation. The electrical generator co-firing the OSR Cake alongside coal or other mineral fuels can benefit from the creation of valuable ROCs alongside other carbon credits. This will provide a further sector for Flex Fuels to achieve maximum market value for our co-products.

The Flex Fuels team has experience of dealing in these sectors and at all levels understands the needs and priorities of both our traditional petrochemical customers and the rapidly expanding Biomass renewables market.

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