Surandy,Well on the 'plus' side, I believe the BEI figures were...

Surandy,

Well on the 'plus' side, I believe the BEI figures were for the plant in Darwin. I would assume Singapore would be more cost efficient due to its size and also because of the greatly reduced shipping charges both for supplying Palm Oil to Singapore as opposed to Darwin and the reduction in costs in shipping from Singapore to the US vs shipping from Darwin to the US

On the 'negative' side, there is currently no guarantee we would get the same price for Biodiesel we get for conventional Diesel. We need some Government support for Biodiesel use.

We also need to take into account this is early days in terms of Vegetable Oil pricing. I would assume they would wait until the price settled down to a level where profits were guaranteed in the medium term before production started.

Even if the margin was only 10 cents a litre, this would still add $60 million to their bottom line or about 20 cents per share profit though which would be nice to see.


ps: I did mention a couple of weeks ago that we could start speculating what might happen if Crude Oil prices rose and Vegetable Oil prices started falling