BES Announces Low Cloud Point Biodiesel Made from Palm.

La Fabril S.A. and Biodiesel Energy Systems Announce Cold Flo Biodiesel, a Sub-Zero Celsius Biodiesel Made from Palm Oil. La Fabril and Its Marketing Partner Make This Their Premier Product for the United States and the European Union 

WASHINGTON -- La Fabril, one of the largest producers of biodiesel from Palm Oil in the world and currently the largest exporter of biodiesel into the United States, announced today that it is commercially producing a biodiesel product made from Palm Oil that has a sub-zero Celsius cloud point. Palm Oil has been widely recognized as being the premier feedstock for making biodiesel. The only negative that has been attributed to biodiesel made from Palm Oil has been its relatively high cloud point. The new "Cold Flo Biodiesel" erases the negative. The product is not an additive but a biodiesel fuel that meets ASTM 6751 in the U.S. and EN 14214 in the European Union. The cloud point (the point at which liquid starts to gel) of the palm biodiesel produced by La Fabril and others to date has typically been above 13[bar] Celsius. The "Cold Flo Biodiesel" has consistently been tested to -3 Celsius, and is being sold with a guarantee of 0 Celsius.

The biodiesel will be marketed by Biodiesel Energy Systems, Inc., La Fabril's marketing partner for the United States and Europe. It will be sold to a variety of customers that will put it into transportation, marine, heating oil and power generation applications.

La Fabril has exported more than ten million gallons of biodiesel to the United States in the past twelve months. The company currently has a production capacity of 36 million gallons per year and is completing a mid-refining addition that will allow it to expand to 100 million gallons per year. The company based in Manta, Ecuador is vertically integrated from palm plantations to the refinery. It has produced edible oil products from palm and other oils for over 40 years.

"Our years and experience in vegetable oils together with our commitment to R&D and to being an innovative company has given us the ability to bring this breakthrough product to the market so fast. We hope to see Cold Flo Biodiesel recognized as the premier biodiesel in the world," said Carlos Gonzalez, General Manager and third generation principal of La Fabril.

Biodiesel produced from palm fruit is interchangeable with petroleum diesel and has many superior qualities over biodiesel produced from other feedstock, such as its oxidation rate. Palm Oil yields approximately 14 times more oil than soybean, which is more commonly used in the United States and much less expensive than rapeseed commonly used in Europe.

About Biodiesel Energy Systems, Inc.

Biodiesel Energy Systems (BES) is a wholesale marketer of biodiesel. Our product is interchangeable with petroleum diesel and meets both the U.S. ASTM 6751 standard as well as the European Union EN 14214.

Through our production partners BES currently has a production capacity of approximately 10,000 metric tons or 3,000,000 gallons of biodiesel per month. By May 2007, monthly production capacity is expected to reach approximately 27,500 MT or 8,300,000 gallons. At this point the facility shall be the largest biodiesel plant in the Americas with annual capacity of 330,000 metric tons (100,000,000 gallons). While our production facilities are able to produce biodiesel from a variety of feedstock, we are currently producing from Palm Oil.

Our expertise in power generation, as well as our ability to deliver large volumes of biodiesel, places us among the most relevant fuel suppliers to power companies and large industrial consumers. Our strategically located production facility enables us to serve customers on the western, gulf and eastern coastlines of the United States as well as Europe with bulk tanker deliveries. Our ocean transportation strategy enables us to serve customers which can not be served effectively from mid continent production facilities.