Mission Biofuels buys stake in feedstock firm

09 March 2007 11:53  [Source: ICIS news]

SINGAPORE (ICIS news)--Mission Biofuels has bought a major stake in an Indian jatropha curcas producer to secure low-cost biodiesel feedstock in 2008, the Australian-listed company said on Friday.

 

The acquisition will ensure that the company has 25,000 tonnes of jatropha feedstock in 2008.

 

Besides being able to control its feedstock costs in the future, the company would also have access to the energy-hungry Indian market.

 

The Indian government was expected to announce its biodiesel policy in the first quarter to promote and encourage jatropha and biodiesel production.

 

Mission Biofuels has also signed a Memorandum of Understanding (MoU) with the Centre of Excellence in Biofuels at Tamil Nadu Agricultural University for a joint programme in jatropha research.

 

In Malaysia, the company was building its first 100,000 tonnes/year biodiesel project in Pahang based on crude palm oil feedstock.

 

A 12,000 tonnes/year glycerine purification plant will also be built at Kuantan Port and the company expects to complete both plants in mid-August, earlier than the original October 2007 schedule.

 

In China, the company signed a tolling agreement with East River Energy Resources and Science Technology to produce biodiesel at its 50,000 tonne/year plant in Tongxiang, Zhejiang province.

 

The Chinese company will reserve up to 30,000 tonnes/year of its capacity for Mission Biofuels.

 

This production will be sold to Wuhan PetroChina Lubricant at a price based on the Chinese major’s daily wholesale mineral diesel price.

By: Florence Tan
+65 6780 4359

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