Agri Energy (AAE)

Shares / Stock Code

AAE

Stock Exchange / Sharemarket

ax

Agri Energy (AAE) is a chemical manufacturing company engaged in the development and production of ethanol and biodiesel. The main focus of the company is on the production and distribution of high quality biofuels to mature markets mainly in Australia and the United States. Agri Energy was listed on the Australian stock exchange (ASX) on 9 February, 1994. Agri Energy is producing 100 million liters per year (Mlpy) Swan Hill Ethanol Project in Victoria, Australia. It is also involved in the development and construction of the 50 million gallons per year (Mgpy) Beatrice Biodiesel Project in Beatrice, Nebraska, United States. Apart from this AAE owns the development projects in Central Europe for Biodiesel at Ennsdorf in Austria, and a seed crushing plant at Hodmez vasarhely in Hungary. AAE took over the Central EU Biofuels Pty Ltd i n March 2007. CEB acquired the outstanding interests (86%) in Carbon Cycle Management AG (CCM) to make its wholly owned subsidiary in August 2007. The planned Ennsdorf Biodiesel Project, which is a fully permitted 95,000 ton per annum multi-feedstock biodiesel plant in Ennsdorf, Austria is owned by CCM.

The focus of AAE is to produce biofuels at the lowest possible cost, while also pursuing a strong sustainability agenda. The agricultural regions provide the advantage of the reduced costs of transporting feedstock and the provision of high quality biofuels in countryside areas. AAE is focused to take the advantage of these opportunities. The Company is also involved in the research of new project development sites and expansion of its interests in all major markets including Australia, USA, Europe and South East Asia.

Agri Energy History

The Company started as Crest Magnesium NL with a focus to build a world scale magnesium metal complex based on a high quality magnesite deposit in Tasmania, Australia. This Project was unfeasible for a small group.

In September 2002, the Company changed its focus to start research and to progress investment in the Australian and international biofuels. AAE completed a comprehensive Ethanol Research and Evaluation Study by September 2003 to identify the most appropriate initial development project and business strategy for Australia. The Company changed its name to Australian Ethanol Limited and moved its head office to Melbourne.

In March 2004, it acquired Australian Biofuels Pty Ltd. In December 2004 it completed a Definitive Feasibility Study with the support of Mitsui & Co (Australia) for the development of an ethanol plant in the Swan Hill region. It also began to expand its focus to the international market and started negotiations to acquire existing biofuels facilities in South Dakota, USA. The Company negotiated an agreement to acquire a 100% interest in Denco LLC in September 2005.

Australian Ethanol took over Beatrice Biodiesel LLC which held a 100% interest in developing a biodiesel facility in Nebraska USA in February 2006. Australian Ethanol conducted a capital raising of A$12.45M on ASX in April 2006, for the development of Swan Hill Ethanol project whose construction started at the site in September 2006.

In January 2007 the shareholders supported a change of name to Agri Energy Limited to reflect the Company's international focus and strategic direction encompassing a diversity of biofuels. Apart from developing the Beatrice Biodiesel and Swan Hill Ethanol projects, AAE is now pursuing the development of further biofuels and agricultural projects in Australia, the United States, Europe and South East Asia.