UK biofuel company signs deal with BP Oil

Four Rivers BioFuels will sell blended biodiesel to energy giant for five years.

Four Rivers BioFuels, the UK subsidiary of Four Rivers BioEnergy, has signed an agreement with BP Oil International for the sale of blended biodiesel for an initial term of five years. The term will commence when the UK facility reaches the minimum production amounts needed to fulfill the contract delivery requirements.

"We are delighted to execute such a major contract with BP, which represents a significant milestone in the strategic development of the Four Rivers group's activities," said Stephen Padgett, CEO of Four Rivers.

Four Rivers' strategy is to increase the UK facility to meet the delivery requirements and expand overall production capacity of Biodiesel Product from the current 77,000 Metric Tonnes per annum to 100,000 Metric Tonnes per annum over the next seven months, and then to 200,000 Metric Tonnes per annum within the next 36 months. Under the sales pact with BP, Four Rivers will supply a minimum of 60,000 Metric Tonnes per annum of the biodiesel.

The company is currently seeking finance for the working capital required for expansion and is also negotiating with supply sources of the feedstock from which the Biodiesel Product will be manufactured. Both the financing and the feedstock procurement are pre-requisites for being able to deliver under the contract.