Subject: Biodiesel Use In BT Equipment Supplied Machinery

This alert is set out as a guide to the use of Biodiesel in the current line up of equipment that BT Equipment supply to our customers.

The use of Biodiesel is a customer choice and there are some risks involved that they should be made aware of. Equipment fuel systems and engines differ in there ability to handle Biodiesel blends and there are issues of both fuel quality and blend ratio to consider.

BT Equipment does not recommend or endorse the use of Biodiesel on any of the equipment that it sells and whilst the use of Biodiesel does not void engine or machine warranty in any way, performance and mechanical issues arising from the use of these products will not be supported or covered by the OEM or BTE warranties.

Examples of these issues may include, but not limited to, power performance, hard to start problems, filter blockages, fuel pump, injector and general fuel system blockages/premature failures. Any of these issues would be investigated relative to the fuel standard used by the customer and warranty would be determined by the engine manufacturer or its representative where applicable.

BTE Service staff and customers need to be alert to problems that can be caused by Biodiesel use and investigate these in conjunction with Engine manufactures representatives and their guide lines for Biodiesel use.

Please refer to the individual criteria for each Engine and OEM manufacturer on the internal intranet site as well as the BTE public web site. Customers should ensure that they investigate each engine manufactures stated recommendations on the use of Biodiesel before using the products available to ensure that the engine is compatible with the standard of Biodiesel being purchased.

As at the release time of this alert, the following Engine OEM guidelines were in place relating to maximum Biodiesel blends.

Cummins
As at the 21/3/2007, Cummins announced the maximum acceptable blend of "B20" (20% Biodiesel / 80% Petrodiesel) could be used in various engine models. Link to http://www.cummins.com and their recent (21/3/2007) news release http://www.cummins.com/cmi/content.jsp?siteId=1&langId=1033&dataId=1153&newsInfo=true&menuId=4

Isuzu
BTE has no official statement from Isuzu at time of this release however Equipment OEM's advise that Isuzu only accept a "B5" (5% Biodiesel / 95% Petrodiesel) blend.

Yanmar
Industrial engine OEM has an official statement that advises acceptance of "B5" (5% Biodiesel / 95% Petrodiesel) blend.

Deutz
Deutz advise a maximum acceptable blend of "B20" (20% Biodiesel / 80% Petrodiesel) could be used in various engine models.

So that customers can make an informed decision on the use of Biodiesel we offer the following public web site links as starting assistance. Please note these linked sites are not affiliated to BTE in any way and the information within them is not endorsed by BTE.

Biodiesel Association of Australia: http://www.biodiesel.org.au

Asia Biofueltech: http://www.asiabiofueltech.com

Newcastle: http://www.newcastle.nsw.gov.au/__data/assets/pdf_file/0014/5333/biodiesel_fs.pdf

Camden: http://www.camden.nsw.gov.au/files/camden_council_biodiesel_final_report_march2005a.pdf

There are many other web sites available on this subject and worthy of review. BTE will post updates in the internal intranet and the company web site as they come to hand.