nfl newbie, page-9

I also feel inclined to comment on the matter of excise on Biofuels, but first we need to put things into perspective.

Although NFL has built a 120MT plant in Darwin it should be realised that they are also building 3 200MT plants in Singapore AND the plant in Darwin is shared with Babc**k and Brown. The result of this is that only about 10% of NFL's revenue is dependant on the results of the Darwin plant.

The second point to take into account is that much of the Biofuel that is manufactured in Darwin will be exported anyway.

The third point regards the current status of excise for Biofuels in Australia. Currently NFL will get a "clean fuels grant" of 38 cents per Litre for their Biofuel but that will fall to 19 cents per Litre in steps after 2010. They are also receiving an "Alternative Fuels Grant" of 11 cents a Litre, but that will reduce to 0 by 2010.

The fourth point is that there is an election coming up. It is reasonable to assume that both major parties will try and score political points with the support they will be offering to the Biofuels industry in the future.

Summary: Don't take too much notice of the results of the Darwin Plant ... take a lot more consideration of what is happening with regard to the Plants in Singapore which I will address later.