17 April 2013 14:47 [Source: ICIS news]
TORONTO (ICIS)--Canadian biofuels and renewable chemicals firm Lignol Energy has taken a 40% stake in Australia's Territory Biofuels (TBF) and plans to help the company restart a shut down biodiesel plant, Lignol said on Wednesday.
Lignol said that convertible notes valued at Australian dollar (A$) $1.18m ($1.23m) it held in TBF had been converted into an equity stake, making Lignol TBF's largest shareholder.
TBF owns a biorefining facility at Darwin in Australia’s Northern Territory, which includes a 150m litre/year biodiesel plant, along with Australia’s only glycerine refinery, Lignol said.
The biodiesel plant, originally built to run on food-grade vegetable oil, was shut down in 2009 because of feedstock constraints. TBF intends to restart the facility using feedstocks such as tallow and used cooking oil, as well as palm sludge oil.
“We plan to work with TBF to finance the restart of this world-class facility and to capitalise on current global trends that appear to indicate increasing demand and profit margins for biodiesel", Lignol CEO Ross MacLachlan said.
($1 = A$0.96)
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