BFC Biofuels

RNS Number:2459K
Biofuels Corporation PLC
10 October 2006


Biofuels Corporation plc
("Biofuels" or "the Group")


Production Update and Capacity Extension


Following the announcement on 27 September, the Board of Biofuels is pleased to
announce that, as expected, the fault resulting in the production of marginally
off-spec biodiesel has been rectified and shipments to customers are
recommencing. As previously stated, this issue necessitated a reduction in
production in September, with 55% of nameplate capacity recorded in that month.

Separately, the Board announces significant progress with its expansion plans.
The Group plans to construct concurrently two additional 200,000 tonne plants,
alongside the existing Teesside 1 plant, with first production before the end of
2008. Biofuels has completed its technology review and has appointed Lurgi AG,
the leading supplier of biodiesel plants, as its technology partner for this
expansion, initially to undertake the necessary detailed front end engineering
design work.

The selection of Lurgi was based on their ability to meet Biofuels' expansion
plans in a timely and highly capital efficient way. The use of this proven
technology will complement the Group's existing highly flexible plant and enable
Biofuels to produce at least 650,000 tonnes of biodiesel per annum. The plant
expansion will realise significant cost savings through operating and logistic
synergies.


Sean Sutcliffe, Biofuels' Chief Executive, comments:

"Product quality is hugely important to us so I'm pleased that we have
understood and resolved the issue we picked up in September and are back on
track.

"The decision to move ahead with additional plant capacity comes as demand
across Europe and in the UK for biodiesel continues to grow strongly,
significantly outpacing currently available supply.

"The selection of Lurgi as our plant expansion technical partner is extremely
good news. Lurgi has strong capabilities and a solid reputation based on proven
performance. This agreement will allow Biofuels to meet the significant
opportunities offered from the projected market growth in the most timely and
cost-effective way. It represents a major step forward in our strategy of being
one of the largest, lowest cost producers in Europe."

                                                                 10 October 2006

Enquiries:

Biofuels Corporation plc                                          01642 371 600
Sean Sutcliffe, Chief Executive
Bob Green, Finance Director

College Hill                                                      020 7457 2020
Mark Garraway
Gareth David




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