ARfuels seals deals for new sales contracts following biodiesel excise law

In Australia, ARfuels announced the execution on June 29 of several new sales contracts for the Barnawartha plant. The major of those contracts is for the supply of a minimum of 40 million liters per annum of biodiesel for the 2016 and 2017 calendar years. This is in addition to several smaller supply contracts which run over the next twelve months.

The company confirmed that the legislation to impose excise on biodiesel has passed both Houses of Parliament and received Royal Assent. That legislation, now law, was foreshadowed in the company’s market announcement on June 18.

The legislation provides for the phase in of excise payable on biodiesel in equal increments over the next 16 years, from a zero rate in 2015-16 to a final rate of 50% of the full diesel excise rate in 2030-31.