Further to my last posting, and having read some of the board...

Further to my last posting, and having read some of the board history, I notice that Yellowcake plays fast and loose with his disclosure. However, today's announcement will surely have him buying in!

From the Oil Mallee Association website:
(http://www.oilmallee.com.au)
"The Oil Mallee Company and CALM recognised in the early 90's that it was going to be difficult to ensure the profitability of oil mallees if eucalyptus oil was the only source of revenue. Consequently over several years, various other products derived from oil mallees were assessed. This led to the concept of integrated production and use of oil mallee products.

The Oil Mallee Company, Western Power Corporation, Enecon and CALM have recently been investigating an IWP system where oil, charcoal, activated carbon, and electricity are all produced in a combined process.

Preliminary work has demonstrated that this system can produce all products at viable prices and give growers a return competitive with their other crop options. Western Power has just finished securing the last of the $5 million needed to build a demonstration plant in Narrogin.

The Integrated Wood Processing plant (IWP) will produce electricity, charcoal, activated carbon, and eucalyptus oil, from mallee feedstock grown on farms in the Wheatbelt of Western Australia. All four products can be produced economically by sharing the infrastructure and maximising use of the feedstock. The activated carbon technology is Australian, developed by the CSIRO.

Fully commercial plants are expected to produce the following annually, from 100,000 tonne of mallee feedstock material supplied by some 10 million mallees:

* 5 MW of electricity
* 1000 tonne eucalyptus oil, and
* 3500 tonne of activated carbon"

Elsewhere they state:
"An Integrated Wood Processing (IWP) plant, or as referred to in the industry, an "Integrated Mallee Processing" plant, was completed in Narrogin in 2006. The pilot plant was tested throughout the first part of 2006 and the results of testing the various capacities were considered very successful... The Minister for Energy issued a statement on 19th June 2006 commenting on the success of the pilot plant."

It would appear that the COZ directors have taken heed of Yellowcake's warnings and are seeking to diversify. I believe they will also lock up the carbon capture IP. Excellent news all round, I think.