New IPO to convert waste plastic to low sulphur diesel

Current Australian IPO Axiom Energy Limited has an interesting proposition for potential investors – the company will produce low sulphur diesel from waste plastics that until now could not be recycled and would otherwise end up as landfill. Axiom also plans to be the largest producer of biodiesel on the Australian Eastern seaboard. Currently, 88 per cent of the 1.5 million tonnes of plastic consumed in Australia annually is sent to landfill, this amount could convert to more than 1 billion litres of low sulphur diesel. For example, a simple ice-cream container, weighing just 68 grams can be converted into a diesel fuel which will power a VW Golf car with a diesel engine for approximately one mile.

Australian investors are being offered a stake in Axiom Energy Limited AUD$37.6 million initial public offering, which opened 29 August 2005. A total of 47 million shares at 80 cents each is on offer raising AUD$37.6 million and creating a market value at listing of AUD$82.7 million. The proceeds of the IPO will be used to acquire, upgrade and expand Axiom Energy’s fuel plants.

Axiom Energy Limited, Managing Director, David Vinson, says the company is seizing the opportunity by pursuing economically viable solutions to meet the growing need for sustainable energy sources. “The entry of these two products - low sulphur diesel and biodiesel into the market is well timed with a growing Australian diesel fuel market, rising crude oil prices, increasing demand for environmentally friendly and sustainable fuels and government tax incentives to promote the use of these fuels.

“Axiom Energy has an agreement in place with a national petro-chemical distributor to distribute production output of both low sulphur diesel and biodiesel for sale in the growing diesel market in Australia,” he said.

Waste plastics into low sulphur diesel

Axiom Energy’s Low Sulphur Diesel is to be made from waste plastics and will be an automotive diesel fuel, which will have a sulphur content of less than 50 ppm. It will meet the new Australian mandatory standard enforceable from 1 January 2006.

Axiom Energy Limited first two low sulphur diesel from waste plastic plants will be built at Laverton, and commissioned in July 2006. These plants are forecast to produce 11 million litres of low sulphur diesel.

Axiom Energy has scope to build 13 more plants across Australia and New Zealand over the next five years as part of Axiom Energy’s exclusive agreement with the technology provider, Australian company Ozmotech.

Under an exclusive agreement, Visy Steel Products will source, sort and supply waste plastic for the production of low sulphur diesel.

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