November 14, 2007 (Biofuel Review) – A new Australian company, Jatoil Limited, formed to invest in the global market for biofuels, has announced an initial public offering to raise up to Aus$10 million ahead of its planned listing on the ASX on 12 December. According to the company it will supply rising international demand for biofuels by both growing and selling low-cost biodiesel feedstock overseas. The company’s main business will be the supply of Jatropha oil. It will, it says, develop its Jatropha feedstock supplies with local partners, initially in Asia, to supply the local Asian economies where the feedstock is grown and the European Union.
Jatoil is offering up to 35 million shares at Aus$0.20 each to raise up Aus$7 million. The company may accept over subscriptions for up to 15 million shares at Aus$0.20 each to raise a further Aus$3 million. The maximum raising is up to Aus$10 million. The company says it has existing cash reserves of Aus$5 million.
Jatoil’s Executive Chairman, Mike Taverner, said: “Jatoil is positioned to supply rising world demand for biodiesel. Crude oil prices are soaring and reserves are limited. Biofuels are an essential alternative to combat the effect of fossil fuels on global warming.
“We will avoid problems encountered by some Australian biofuels companies by operating outside of Australia and producing low-cost Jatropha feedstock oils in Asia to meet rising demand for industrial fuels, in particular in the local Asian economies and in Europe.
“Jatoil is an early mover in the Asian Jatropha market and we expect to become a dominant player. We have already entered an agreement to participate in substantial Jatropha projects in Indonesia and we are initially exploring additional opportunities in Sri Lanka and South East Asia.”