Axiom continues toward launch of 40 Mgy biodiesel plant in Geelong, Australia; says tallow price hikes affected other plants more

In Australia, Axiom Energy is continuing with its buildout of a 40 Mgy biodiesel plant at the Port of Geelong, near Melbourne. The company said that beef tallow is only one of the feedstocks they plan to use, and the recent tallow price hikes which forced other plants to shut production will not have as great an impact on the Axiom plant’s profitability.

The last Australian biodiesel plants in operation closed down last week to excessive feedstock costs and low biodiesel prices. The Australian Renewable Fuels tallow-based biodiesel plants in Bunbury and Adelaide were the last biodiesel facilities in the country, according to the company’s owners.

The decision follows closures and project halts on Australian ethanol plants by Agri Energy. That company’s CEO said that “The decision to put on hold any further development in the Australian biofuels industry is a result of current global biofuels market outlook, reflecting ongoing high feedstock prices and continued uncertainty from the investment community, government and community support for alternative transport fuels in Australia.”

Last month, a $30 million biodiesel plant in Port Botany was opposed by the Green Party for proposing the use of Indonesian and Malaysian palm oil. However, the Queensland government has approved a 40 Mgy biodiesel plant that will be constructed at Mackay; the plant will be operated by the Mackay Port Authority and begin production in 2008.

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