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RENEWABLE FUELS SECURES MAJOR ENERGY CROP SUPPLY CONTRACT WITH E.ON UK FOR UK'S LARGEST DEDICATED BIOMASS POWER STATION 13 Oct 2005 Renewable Fuels Ltd, one of the country’s leading biomass fuel supply companies, has today (12 October) signed a major contract with E.ON UK for the supply of Short Rotation Coppice (SRC) willow wood chip as a carbon neutral fuel for the dedicated biomass power plant. Work will start on the £90m, 44 MW plant in Lockerbie, Scotland, later this year with commercial operation expected in December 2007. To read article from Farmers Weekly Interactive, follow the link below: http://www.fwi.co.uk/Articles/2005/10/13/89940/Boost+for+northern+biomass+growers.htm As specialists in energy crop development, Renewable Fuels is contracting with farmers and land-owners in Dumfriesshire and Cumbria for the establishment of up to 3700 hectares of SRC willow over the next 6 years. Out of the 220,000 oven-dried tonnes of fuel required for the station every year, it is expected that up to 45,000 oven-dried tonnes a year will come from SRC willow grown locally. Bob Smith, Managing Director of Renewable Fuels Ltd commented, “The E.ON biomass plant is crucial in identifying a direction for the UK’s energy industry. It is imperative that we increase our use of local and natural resources for power generation and the biomass plant will be a great example of this. Renewable Fuels is already making significant progress in contracting with local farmers as more and more growers recognise SRC willow as an economic, environmental and financially viable crop”. The Lockerbie station, which will be able to supply enough green power to meet the needs of around 70,000 homes and displace the emission of 140,000 tonnes of greenhouse gases every year, will be the UK’s largest dedicated biomass station*, when completed. Jason Scagell, Director of E.ON UK Renewables, said: “We’re delighted to have been able to sign this contract with Renewable Fuels to ensure a supply of fuel for this important station. “Lockerbie is a major project for us and for Scotland and it has huge potential for both electricity generation and as a future source of revenue for local farmers.” Recognising the significance of the development of energy crops in Scotland, the Scottish Executive last month announced an increase in the grant aid available for SRC establishment** Scottish Forestry Minister Rhona Brankin commented, “There is increasing interest in Scotland in using biomass (plant fibre) as a fuel for generating heat and power, not only as a means of developing a new market for our increasing forestry production, but also as a means of reducing our net emissions of greenhouse gases such as carbon dioxide”. ------Ends------- Notes to editors: * = Currently poultry litter station at Thetford, rated at 38.5MW ** = bringing the Farmland Premium grant from the Scottish Forestry Grant Scheme inline with the equivalent grant in England of £1000/ha, subject to approval by the European Commission 3. Renewable Fuels Ltd processes and trades in a variety of biomass-derived fuels and is one of the first companies to provide complete services for the establishment of SRC willow in the UK. This includes land assessment, planting, harvesting and supply logistics using experiences gained over many years in Scandinavia from the parent company, Svenska Lantmännen, a co-operative made up of over 52,000 Swedish farmers. Part of this co-operative is Agrobränsle AB, world’s leading specialist in Short Rotation Coppice willow with over 15,000 ha of established crops. York based Renewable Fuels Ltd has this year managed the UK’s first full scale trials of co-firing SRC with coal at Drax Power Station in Selby, Yorkshire. For further information visit: www.renewablefuels.co.uk 4. Coppicing is the practice of cutting down a tree and allowing the shoots that emerge from the stump to mature into new stems. Fast-growing species such as willow can grow substantial new stems ready for harvesting in about three years, hence the term "short-rotation" coppice, and they can continue doing so through many rotations. 5. It is estimated that the power station, which will be located at Steven’s Croft, will create 40 direct jobs and 300 indirect jobs in forestry and farming. In total, E.ON operates more than 300 power stations across the world. At the global level, 37% of the electricity they generated resulted in zero emissions of carbon dioxide, with around 6% of the total power generated coming from green sources. Contacts: For images and additional information contact: Pernilla Tweddle, Marketing Renewable Fuels Ltd Tel 01904 720817 mobile 07814 035405 pernilla@renewablefuels.co.uk A 3D computer animation of the project is available, as well as further press details from E.ON UK from Jonathan Smith, Tel 024 7642 5741

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