Australian Biodiesel Group gains access to new technology

In November 2008 the Australian Biodiesel Group (ABG) announced a planned strategic alignment with White Mountain Group (WMG). This alignment was in the form of an investment of $16 million in ABG by WMG and the transfer of a patented and commercially proven biodiesel technology to ABG that produces low cost renewable diesel fuel. Today ABG has foreshadowed the strategic alignment will take place early in 2009 subject to finalising due diligence and gaining shareholder agreement.

After reading both press releases a number of times I’m still not sure I have the facts straight as the information provided is sometimes contradictory and vague.  Hopefully future press releases by ABG and WMG will provide a clearer insight into the new arrangements. My best efforts in decyphering the information concludes that there are five significant aspects to the deal that will take place if the alignment goes ahead:

WMG, a US company operating in Arizona, will own 51 percent of ABG.

WMG want to convert ABG’s existing facilities to run the  Solverdi process by mid-2009. The Solverdi thermal depolymerization process shears long chain oils into renewable fuel through the use of heat, vacuum and pressure. Part of the $16 million investment will be used for licensing the technology and the installation of a new processing and refining plant to be located on current ABG premises.

ABG will have access to the Danzik Shallow Water Reactor Process which is also owned by WMG. This technology enables waste water to be processed into biodiesel when the waste water contains long chain polymers such as grease or oil. The waste water is converted without chemicals such as methanol and caustics used in traditional biodiesel production.

ABG will transform into a company that makes biodiesel and produces electricity at the feedstock source, presumably though some form of cogeneration using waste heat. This has been indicated by ABG saying it always wanted to be a vertically integrated energy and waste recycling company and WMG saying they have secured a large renewable energy consumer in Australia that has agreed to a beta installation beginning in March of next year.

Finally, it will give ABG worldwide rights (exclusive of North America) to license and operate additional new facilities to produce renewable fuels or convert existing or redundant biodiesel facilities to the new technologies.

With the Australian biodiesel industry clearly on its knees right now the infusion of more efficient technology may give it a much needed boost.

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One Response

  1. This so called technology is total bull crap. Danzik and his group do not even own the TDP process which is held in patent by a bio diesel manufacturer in colorado. Furthermore, it does not work at commercially viable production rates.
    Danzik has been involved in more law suits than Gene Simmon’s tongue has on the female gender!

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