GROWING CROPS FOR BIODIESELAustralian Oil Seeds Forum

NATURAL FUEL | 11 OCTOBER 2006RICHARD SELWOOD | MANAGING DIRECTOR

11 OCTOBER 2006 PAGE 2GROWING CROPS FOR BIODIESEL

BIODIESEL HERE TO STAY

Europe / UK / USA

Leading the way, Australia will follow

Biodiesel a mainstream fuel

Blends from B5 to B20 readily available

B100 also available

Commitment from car/heavy vehicle/machinerymanufacturers to biodiesel

Vision for B100

2020 Sweden to phase out fossil fuels entirely

2020 Other EU countries 20% B100 market share

11 OCTOBER 2006 PAGE 3GROWING CROPS FOR BIODIESEL

WHY BIODIESEL?

Environmental Benefits

Sustainability

Equivalent Combustion Properties to PetroleumDiesel

Mechanical benefits

Lubricity, Studies re Improved Performance

Boost & Develop Primary Agriculture

11 OCTOBER 2006 PAGE 4GROWING CROPS FOR BIODIESEL

EXCITING TIMES

Explosion of Biofuel producers onto scene

Huge requirement for feedstocksParticularly vegetable/seed oil

Demand will dramatically increase

Now is the time for careful decisions

11 OCTOBER 2006 PAGE 5GROWING CROPS FOR BIODIESEL

COMPANY STRUCTURE

NFLNatural Fuel Limited

NFPLNatural Fuel

Pte. Ltd

NFENatural Fuel &

Energy, Inc.

NFEBNatural Fuel & Energy

Biofuels, Inc.

NFALNatural FuelsAustralia Ltd

NFDNatural Fuels

Darwin Ltd

BEI50%50%

SNTG

80%100%

11 OCTOBER 2006 PAGE 6GROWING CROPS FOR BIODIESEL

Darwin Facility as at 4th October 2006

11 OCTOBER 2006 PAGE 7GROWING CROPS FOR BIODIESEL

NATURAL FUELS AUSTRALIA LIMITED

Our Vision

To be the market leader in the manufacture anddistribution of biodiesel in Australia

To become the largest, low cost producer ofpremium quality biodiesel and glycerin on asustainable basis

11 OCTOBER 2006 PAGE 8GROWING CROPS FOR BIODIESEL

NFAL: LEADING THE WAY

World first: Plant constructed off site

Lurgi exclusive 5 year Australian license(recognised quality)

Product will conform to all internationalstandards (export)

Selected Key Partnerships (international &domestic)

11 OCTOBER 2006 PAGE 9GROWING CROPS FOR BIODIESEL

PROCESS MODULE TRANSPORTED BY SHIP

11 OCTOBER 2006 PAGE 10GROWING CROPS FOR BIODIESEL

UNLOADING OF THE MODULE

11 OCTOBER 2006 PAGE 11GROWING CROPS FOR BIODIESEL

FEEDSTOCKS

Primary

Canola

Soybean

Palm

Secondary

Corn

Sunflower

Coconut

Peanut

Mustard

NFL Group will only use virgin vegetable oil

NFL refineries capable of using variety offeedstocks, eg:

11 OCTOBER 2006 PAGE 12GROWING CROPS FOR BIODIESEL

GROWING CROPS FOR INDUSTRIAL APPLICATION

Why Grow?

Virgin vegetable/seed oil way forward

Booming market

$ Benefits

Government Incentives

11 OCTOBER 2006 PAGE 13GROWING CROPS FOR BIODIESEL

OTHER CROPS?

Crops with high oil content suitable forAustralian conditions

GM crops being developed

Salt resistant /drought hardy

Algae?

Malley?

11 OCTOBER 2006 PAGE 14GROWING CROPS FOR BIODIESEL

ENERGY CROPS AUSTRALIA

Recognition of Need for Local Feedstocks

Viability of growing for Biofuels

Located in Northern Territory

11 OCTOBER 2006 PAGE 15GROWING CROPS FOR BIODIESEL

ECA Soybean Crop Trials for Oil Seed

11 OCTOBER 2006 PAGE 16GROWING CROPS FOR BIODIESEL

EXPLODING BIODIESEL MYTHS

A small selection of the many myths …

Clogs fuel filters

CDU studies re virgin vegetable oil originbiodiesel disproves myth for new engines

Good news for crop growers

Degrades Seals

No modifications required for engines > 1995

Food stocks vs Feedstocks

11 OCTOBER 2006 PAGE 17GROWING CROPS FOR BIODIESEL

Voids Car Warranties

B5 meets diesel specifications therefore doesnot void warranty

Production to international standards OK (Eg:In Europe car warranties not affected)

11 OCTOBER 2006 PAGE 18GROWING CROPS FOR BIODIESEL

Biodiesel more hygroscopic than mineraldiesel, therefore problems with microbialgrowth, storage and corrosion

CDU test in NT (humid conditions) disprove theabove

Government “penalising” biodiesel users

Misconception about tax rebates for end users

GROWING CROPS FOR BIODIESELAustralian Oil Seeds Forum

NATURAL FUEL | 17 OCTOBER 2006RICHARD SELWOOD | MANAGING DIRECTOR