Alternative fuels player Axiom Energy is going against the grain by strategically basing its production facilities close to its customers rather than close to sources of supply.

The company says that configuring the supply chain appropriately and increasing its efficiency is a key point of differentiation when compared to other Australian biodiesel producers.

Axiom Energy has worked to bed down agreements with ports in both Victoria and New South Wales, where it will establish biodiesel facilities to produce 150 million litres of biodiesel per annum each.

Axiom’s site in Victoria is on a 20-year lease which means any competitors in the area would be faced with much higher capital costs.

CEO Danny Goldman says being closer to the actual markets is a distinct advantage, and Axiom Energy will have a higher blend ratio enabling it to meet the Australian Fuel Standards.

The company had taken into consideration the Australian Fuel Tax Act 2006 when formulating its business strategy, and will work successfully within its parameters rather than demanding change.

Technical Director David Vinson says that using higher quality inputs that lead to higher blend ratios is a philosophy Axiom Energy has embraced, which enables the company to offer savings and benefits of up to 30 per cent of a client’s fuel bill rather than the five per cent maximum provided by the majority of Australia’s existing players.

The importance of managing the overall system the company will use to bring its product to market has not been overlooked by Axiom Energy, acknowledging that the supply chain can often present the greatest challenge for newly emerging companies.

Visy Industrial Packaging – market leader in the development and supply of high quality plastic and steel packaging and associated sustainability services – has partnered Axiom Energy to commence commercial trials of biodiesel in its trucking fleet.

The agreement has been seen as a major boost to the alternative fuels industry and immediately follows Linfox’s decision to commence Axiom Energy Biodiesel trials in its long-haul trucks.

Axiom Energy has received an operational boost with the formation of a strategic alliance with Visy Industrial Packaging – which will see the commencement of commercial trials of biodiesel in its trucking fleet.

Australian renewable energy company Axiom Energy has entered a strategic alliance with Visy Industrial Packaging to commence trials of biodiesel in its trucking fleet.

Axiom Energy Managing Director Danny Goldman said the Visy alliance demonstrates the capacity for biodiesel to become the preferred alternative energy source for commercial operators in Australia.

Visy Industrial Packaging Chairman Raphael Geminder said the decision to review its fuel policy to include a sustainable fuel option such as biodiesel forms part of its continued focus on sustainability.

Australian renewable energy company Axiom Energy has entered into a strategic alliance with Visy Industrial Packaging which will see the commencement of commercial trials of biodiesel in its trucking fleet.

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Axiom Energy has secured a long-term lease in Geelong where it will manufacture 150 million litres of biodiesel per annum. The biodiesel company has entered preliminary agreements with Toll Holdings and Terminals Pty Ltd for a facility on the one hectare site at Toll GeelongPort.

Australian company Axiom Energy has chosen Geelong as its preferred location for the establishment of a biodiesel manufacturing facility located at Toll GeelongPort.

The manufacturing facility will have capacity to produce 150 million litres per annum of biodiesel made from renewable plant oils and animal fats.  The combined investment of the manufacturing facility and associated logistics infrastructure in Geelong will total $50 million.

Axiom Energy’s Managing Director Mr. Danny Goldman said that on completion the Company’s biodiesel manufacturing facility at Toll Geelong Port will be the largest in Victoria and with production scheduled to commence by mid 2007, it would be the first Victorian producer to market

Minister for Energy and Resources Theo Theophanus will announce today Axiom Energy’s plan to develop a large-scale biodiesel facility at Toll GeelongPort as a part of the company’s plans to establish a network which will encompass Australia and New Zealand.

Axiom Energy and partners will invest $50m in the development of the site, which will progress subsequent to works and planning approval.

Member for Lara Peter Loney welcomed the investment in the area, saying that the jobs boost and the fact that the biodiesel facility will be environmentally friendly was terrific for Geelong.

Axiom Energy plans to build a biodiesel facility with capacity to produce 150 million litres per annum made from renewable plant oils and animal fats. The Toll GeelongPort facility will have infrastructure to double production.

The company has entered into preliminary agreements with Toll Holdings Ltd and Terminals Pty Ltd, securing a long-term lease holding for a one-hectare site and facilities for handling and storage. The facility is expected to be operational by mid-2007.

Australian Government incentives and private tax rulings provide strong impetus for the growth of alternative fuel products. Biodiesel receives a grant, which offsets the excise duty until 2011, which will be progressively phased out by 2015.

Managing Director Danny Goldman said the one-hectare site is ideally located to provide a streamlined ship-to-shore interface reducing trucking traffic to and from the site, supported by solid port facilities and infrastructure.