High costs make biodiesel unviable - Mission

07 May 2008 11:03  [Source: ICIS news]

SINGAPORE (ICIS news)--Mission Biofuels will produce and sell biodiesel only when it is profitable to do so, citing high crude palm oil (CPO), rapeseed oil and soy oil feedstock prices, said the Australian biodiesel producer.

The firm is instead focusing on its more profitable wind business - which has generated more than 10,000kWh of power since it was commissioned at end-February - to contribute to its earnings before interest, tax, depreciation and amortisation (EBITDA) forecast of Australian dollars (A$) 9m ($8.57m) in 2009, it added in a statement released on Tuesday.

Mission Biofuels is currently trying to secure sufficient CPO feedstock quantities at reasonable prices, or obtain higher sales prices in US and Europe.

The firm is looking to produce and sell some 4,000 tonnes of biodiesel at a profit in May, and ramp up its glycerine refining capacity from 600 tonnes/month to 900 tonnes/month.

It has also secured a five-year sales contract for 110,000-160,000 tonnes/year of biodiesel on a cost plus basis, commencing July 2008. although the buyers were undisclosed.

Mission Biofuels aims to switch to using inedible jatropha oil feedstock and expand its upstream Jatropha-growing agricultural business in India.

The firm also expects its second 250,000 tonne/year facility in Kuantan, Malaysia, to come on stream by December 2008 instead of the previously reported third-quarter 2008 period.

($1 = A$1.05)

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By: Serene Cheong
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