HUN.L Regulatory News (HUN)

30 Sep 2009 09:58



GEM BioFuels Plc

("GEM" or "the Company")

Directorate Change

GEM BioFuels Plc (AIM: GBF), the emerging feedstock supplier to the global biodiesel industry, today announces changes to its Board of Directors. 

Following a review of the Company's current operations and its intended strategic direction, which is expected to deliver substantial growth in the business, the Company has decided to implement a number of Board changes to reflect the anticipated change in the Company's scope of operations.

The significant progress made by the Company as it draws nearer to production and looks to broaden its scope of activities, has highlighted the need for a full-time finance professional. As a result, Murray Konarik has been appointed as full-time Chief Financial Officer ("CFO") of the Company, with a view to joining the Company's Board at the appropriate time. Mr. Konarik is a qualified Chartered Accountant who has held a variety of senior management positions in agri-based and international trading businesses. Mr. Konarik will be based in Perth, working alongside the Company's CEO, Paul Benetti. Frank Tiller, the Company's part time Finance Director, having played a key part in establishing the Company's internal controls and financial reporting structure during its initial stages of development, stepped down from the board as of yesterday.

Adam Broadhurst, the Company's Operations Director, also stepped down from the Board as of yesterday. Mr. Broadhurst will remain with the Company, assuming responsibility for the development of new business opportunities and utilising the experience of recent years to further the growth of the Company a role which, will place increasing demands on his time. 

Simon Hunt will continue as Non-Executive Chairman and Malcolm Williams and Pritesh Desai will continue in their roles as Non-Executive Directors of GEM BioFuels Plc.

Commenting on the announcement Paul Benetti said:  "GEM is rapidly becoming a key player in the business of large-scale, low-cost production of non-food vegetable oil for biodiesel. These changes best position the Company for continued significant growth and we look forward to taking the business to the next stage of development. 

Frank Tiller and Adam Broadhurst have been involved in a period of considerable growth and have made significant contributions to the development of the business. We would like to thank them both for their efforts."

Enquiries:

NOTES TO EDITORS

About GEM BioFuels

GEM BioFuels was founded in 2004 to capitalise on the opportunity presented by the local agricultural and socio-economic conditions in Madagascar to produce Jatropha oil for use as a biodiesel feedstock. Operations are based in the South of the island where the Jatropha tree grows wild.

The Company has secured 50 year agreements giving exclusive rights over 452,500 hectares (in excess of 1 million acres) to establish plantations, ranging in size from 2,500 - 50,000 hectares with a further 40,000 hectares of natural forest containing substantial numbers of mature Jatropha trees.

GEM BioFuels Plc was admitted to trading on AIM in October 2007.

Jatropha

Jatropha is a small tree/shrub, growing to about 5 metres in height and is well suited for use in the production of biodiesel. Jatropha trees are relatively drought resistant and suitable for cultivation in sub tropical regions. The high oil yielding seeds are mildly toxic and as such Jatropha is not a food and its use in biodiesel production does not affect the cost of living of the indigenous population. Biodiesel refined from Jatropha oil complies with international standards, including EN14214 in Europe, the major market for biodiesel.

Whilst the current production of Jatropha seed for commercial purposes is small, it is substantially increasing due to its attractiveness as a biodiesel feedstock because of its ability to grow on marginal land and the fact that it is non-edible and so does not fall foul of the 'food versus fuel' debate.