LONDON, Dec. 17, 2007 (PRIME NEWSWIRE) -- Flex Fuels Energy, Inc. ("Flex Fuels" or the "Company") (OTCBB:FXFL) announced today that its wholly owned subsidiary Flex Fuels Energy Limited has received an Outline Planning Consent ("Consent") to construct a biodiesel refinery at the Port of Cardiff, Wales.
Planning Consent
The Consent, received by the Company on December 11, 2007, is the last major planning requirement. The outputs from the Early Works Agreement ("EWA") with Lurgi (announced on October 5, 2007) are expected to provide the detail required to complete the refinery planning and the Integrated Pollution Prevention Control consents early in 2008.
The Consent follows on from the earlier full consents granted for the construction of an oilseed crush and solvent extraction plant. This now enables the Company to proceed with development of its proposed Biodiesel refinery and Integrated Solvent Extraction Seed Press ("Integrated Plant").
Integrated Plant Capacity
Flex Fuels has determined that the United Kingdom ("UK") biofuel market growth, expected to result from the introduction of the Renewable Transport Fuel Obligation legislation in the UK ("RTFO"), calls for a larger scale plant capacity than originally envisaged. In order to derive considerable economies of scale and provide a strong competitive advantage compared to a smaller scale plant, Flex Fuels expects its final specification to be for a 200,000 tonne per year (nameplate capacity) Integrated Plant.
Current and Future Biodiesel Markets
Flex Fuels expects that the current low levels of demand for Biofuel in the UK, particularly for Biodiesel, will grow considerably after introduction of the UK RTFO legislation.
Under the RTFO, obligated suppliers will be required to initially blend 2.5% by volume of Biofuel into all road transport fuels from April 2008, which will increase to 5% in April 2010. The UK and collectively the EU heads of state have stated their intention to increase the RTFO to 10% in due course.
Flex Fuels has positioned itself to maximize the benefit from the anticipated growth in demand expected to result from this legislative incentive. The Company's proposed timing for its market entry avoids the current oversupply in the UK and wider European market which has placed considerable trading pressure on established refinery capacity ahead of this forecast market change.
Brian Barrows, CEO, commented; "I am extremely pleased to receive this Consent, which reflects well upon our Engineering team who are operating in a highly regulated UK planning regime. In conjunction with the outputs from the EWA, it will enable us to complete our full planning process very shortly. This as an important milestone, enabling us to progress to development of our detailed design, off take and supply agreements required to move to a timely financial close, EPC contract and, importantly, to maintain the strategic timing for our intended UK market entry."
About Flex Fuels Energy, Inc.
Flex Fuels is a diversified company developing its wholly owned alternative energy business, Flex Fuels Energy Limited, and mining exploration activities in British Columbia, Canada. Flex Fuels is focused on delivering a vertically integrated BioEnergy operation in the UK, building a "Farm to Fuel" value chain. Its ethical, environmentally friendly business is designed from the ground up to deliver real value to shareholders. Its products aim to reduce carbon emissions and contribute positively to the fight against Climate Change. Flex Fuels actively seeks to improve the environment in every stage of its business.
To find out more about Flex Fuels Energy (OTCBB: FXFL), visit our website at www.flexfuelsenergy.com.
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Forward-Looking Statements
The statements in the press release that relate to the company's expectations with regard to the future impact on the company's results from acquisitions or actions in development are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. The statements in this document may also contain "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. Although the Company believes that the expectations reflected in the forward-looking statements are reasonable, such statements should not be regarded as a representation by the Company, or any other person, that such forward-looking statements will be achieved. Since the information may contain statements that involve risk and uncertainties and are subject to change at any time, the company's actual results may differ materially from expected results. Flex Fuels Energy, Inc. disclaims any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events, or otherwise. In light of the foregoing, readers are cautioned not to place undue reliance on such forward-looking statements.