Natural Fuel Limited
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Extraordinary General Meeting 5 June 2008
Overview: Natural Fuel Ltd
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Natural Fuel Limited (NFL) is an Australian renewable energy company which listed
on the Australian Stock Exchange in 2006.
Aims to be a leading global player in the supply of biodiesel and kosher grade glycerine
Owns the world’s largest biodiesel and glycerine production facility in Singapore
50% owner of Australia’s largest biodiesel and glycerine production facility in Darwin
NFL Directors and Management
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• Richard Selwood Non Executive Chairman
• Michael Pixley Deputy CEO
• Mathew Whyte Company Secretary & Chief Financial Officer
• Martin Kirwan Non Executive Director
• Michael Coote Non Executive Director
• Robert Rooke Non Executive Director
• Noel Winzer Non Executive Director
Singapore Operations
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• Owned and operated by Natural Fuel Singapore Pte Ltd
• Located on Jurong Island
• Capacity of 600,000mta biodiesel and 60,000mta glycerine
• Independent glycerine refining capabilities
• Capable of using multiple feedstock blends
Singapore Facility
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Current Production Capacity at Singapore
Train 1 Train 2 Train 3
Glycerine 1 Biodiesel 1 Glycerine 2 Biodiesel 2 Glycerine 3 Biodiesel 3
20,000mta 200,000mta 20,000mta 200,000mta 20,000mta 200,000mta
Hub for global fuel market
Tax free for 10+ years
Capacity for plant expansion
Good access to feedstock
Good access to Asia and US Markets
Darwin Operations
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• Owned and operated by Natural Fuels Australia Ltd (NFAL) - a 50/50 Joint
Venture between Babcock & Brown Environmental Investments and NFL
• Capacity of 122,500 mta biodiesel and 12,000 mta refined glycerine
• Independent glycerine refining capabilities
• Capable of using multiple feedstock blends
Asset Utilisation Strategy
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To meet the current market challenges, NFL is implementing specific plans to maximise
utilisation of its assets, mitigate market risks and provide the foundation for future growth:
Production of Refined Glycerine
Maximum utilisation of glycerine refining capabilities to generate revenues by processing external
crude glycerine into refined, kosher-grade glycerine (Glycerine Mode)
Source Alternative Feedstocks
Continue to focus on long-term feedstock contracts and fast track access to lower cost alternative
feedstocks such as jatropha
Cost Reductions
Reduce fixed costs at Darwin and Singapore to align with Glycerine Mode operations and reduce
overhead costs at corporate levels
‘Glycerine Mode’ Operations
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A significant competitive advantage is NFL’s ability to optimise plant operations from full
biodiesel production to full refined glycerine production depending on feedstock prices
‘Glycerine Mode’
Imported Crude
Glycerine
Biodiesel Production Glycerine Refining
‘Biodiesel Mode’
Feedstocks
Biodiesel Refined
Glycerine
Partnership with GEM Biofuels
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• GEM Biofuels is
AIM-listed biodiesel feedstock company
Focused on Jatropha plantations in Madagascar
• Initial 10 year supply agreement signed with NFL
5 yrs fixed price of US$500 per metric tonne Jatropha
2009 = 2.5% of Singapore feedstock requirements
2013 = 25% of Singapore requirements (up to 50%)
• NFL holds a 3.9% interest in GEM
Jatropha as a Key Feedstock
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• Inexpensive - high yields, grows on arid land
• Produces high quality biodiesel with superior
cold flow properties
• No impact on ‘food’ market - not a food stuff
• Local species = reduced risk of crop failure
• Long economic life - 35-40 year productive life
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Singapore
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Singapore
Proposals
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1. The Power Knight Proposal
2. Two additional matters:
The issue of the Tropical Oils Options to Tropical
Oils
The conversion of the outstanding balance of the
Working Capital Loan from Ganesha into Shares
The Power Knight Proposal
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The Power Knight Proposal comprises:
• Part 1 - The issue of Shares to Power Knight to raise US$20M
Placement of 168,764,978 Shares for a total issue price of US$20M, equivalent
to A$0.13 per Share (as at 25 March 2008)
• Part 2 - A Project Finance Loan of US$20M advanced in two portions:
Tranche 1 = US$6 million drawndown 24 April 2008
Tranche 2 = US$14 million drawndown 29 May 2008
• A right for Power Knight to convert the outstanding principal amount of
the Project Finance Loan into Shares
Placement of up to a further 168,764,978 Shares
About Power Knight
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• Power Knight is an associated company of PT Risjadson Holding
& Investment Co - a privately owned company based in Jakarta,
Indonesia
• Risjadson, controlled by the Risjad family, is focused on energy,
mining and plantation sectors in Indonesia
• The Risjad family is committed to green energy development
through renewable fuel crop production such as Jatropha
The Risjadson Group
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• The Risjad family’s pilot program includes an
established jatropha plantation of more than
200ha, which is currently generating fuel for
equipment and haulage trucks for the family’s
coal mining operations in Indonesia.
• The Risjad family anticipates that the alliance with NFL will offer it the
opportunity for significant expansion of its jatropha production and
refining capacity.
Risjadson Group Overview
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Risjadson Group
Energy & Mining Resources Agro-Industries & Plantation Resources
Mining Plantations
Thermal Coal Direct/Indirect CPO Direct/Portfolio
Nickel Indirect Rubber Indirect/Portfolio
Chromium Indirect Chromium Indirect/Portfolio
Gold Indirect Gold Indirect/Portfolio
Bauxite Indirect Bauxite Direct
Services Non-Core Portfolio
Contracting Indirect Petrochemical Indirect
EPC Indirect Chemical Direct/Indirect
IPP Indirect Manufacturing
Trading Direct & Consumer Direct/Portfolio
Maritime & Logistics Indirect
Key Outcomes if the Proposal is Passed
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• Increased cash resources which will allow continuation of NFL’s ‘Asset
Utilisation Strategy’
• A new strategic partner in Power Knight – feedstock supply and
biodiesel offtake
• Power Knight could own up to 49.98% of NFL
• Dilution of Shares – up to 675,342,083 Shares on issue
• Power Knight will elect three members to NFL board
Additional Matters
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• Tropical Oils Options
Subject to passing of Power Knight Proposal
Power Knight Proposal was facilitated by Tropical Oils
In recognition NFL agrees to issue Tropical Oils with 12M options exercisable at
A$0.13 per Share within 3 years from this EGM
• Conversion of Working Capital Loan from Ganesha
NFL may exercise an option to convert all or part of the balance of the loan into
Shares at an issue price of A$0.13
The Company’s current intention is to convert 60% of the balance into
20,769,231 Shares
Subject to shareholder approval