Natural Fuels secures major biodiesel contract

SINGAPORE (ICIS news)--Biodiesel producer Natural Fuel Limited has signed a 12 months contract with a Europe-based oil and gas commodities trading company to supply 50,000 tonnes of biodiesel monthly, the company said in a statement released on Friday.

“The contract will see Natural Fuel running at full capacity this calendar year,” the company said, referring to its 600,000 tonne/year biodiesel plant located at Jurong Island, Singapore.

The Australia-listed company added that they were currently in advanced discussions with several major banks for the provision of additional working capital, and that the negotiations are expected to be finalized following the Lunar New Year festivities next week.

Market sources surveyed by ICIS news were largely sceptical about the announcement, considering the recent difficulties seen in the Asian biodiesel industry, especially as falls in crude oil prices and comparatively higher feedstock vegetable oil values weighed on blending economics.