jatropha supply from gem deal finalised, page-6

Jatropha supply contract announcement was missing some information. GEM BioFuels article regarding the agreement shows (see bold part) that planting is behind schedule due to a short supply of seeds.

"GEM BioFuels Plc ('GEM' or the 'Company') (AIM: GBF), a company established to supply feedstock to the rapidly growing global biodiesel market, is pleased to announce that it has signed a long-term Off-take Agreement (the 'Agreement') with Natural Fuel Limited ('NFL'), under which GEM will supply NFL with crude Jatropha oil as feedstock for its Singapore biodiesel facility.

Under the terms of the Agreement, for which a letter of intent was signed and announced by NFL in October 2007, GEM will supply 55% of its crude Jatropha oil production in Madagascar to NFL. The Agreement is for a 10 year period, starting in January 2009, at a free on board delivery price of US$500 per tonne, adjusted for inflation, for the first 5 years. NFL, which is listed on Australian Stock Exchange, is developing biodiesel refining facilities with production capacity in excess of 700,000 tonnes per annum (t.p.a.).

GEM also announces the conclusion of its 2007/2008 planting season during which more than 30,000 hectares of further plantations have been established. The Company believes that, had sufficient seed been available, it would have been able to achieve the plantation levels indicated in its October 2007 Admission Document. The Company expects to have sufficient seed available in 2009 to achieve its programmed plantation work in this year. GEM expects to produce around 20,000 tonnes of crude Jatropha oil by 2009.

Paul Benetti, CEO of GEM BioFuels commented: 'We are pleased to have signed this agreement with NFL which cements a constant demand for the term of the Agreement and highlights the incentive for purchasers of Jatropha oil in securing the supply of biodiesel feedstocks at agreed prices, an agreement which benefits both the purchaser and supplier therein.'"