Biofuels, such as biodiesel and ethanol, are being developed as a response to climate change, high oil prices and an increasing lack of secure energy supplies.

GEM BioFuels has been established to supply jatropha-based feedstock to the rapidly growing global biodiesel market. The Directors believe that one of the most significant potential constraints on the growth of this market is the relatively limited supply of biodiesel feedstock, and that this provides a significant commercial opportunity for the Company.

Since commencing its Madgascar operations in 2005, GEM BioFuels has secured over 490,000 hectares of land and started establishing large Jatropha plantations across 200,000 hectares in the south west of Madagascar.