Idle biodiesel plant receives additional investment

Canadian biofuel company Lignol Energy is set to invest additional monies into a currently idle Australia-based biodiesel facility.

The additional $908,000 (€678,100) investment will increase Lignol’s holding in plant owner Territory Biofuels to 66% of issued and outstanding shares and 68% on fully diluted basis. The 140 million litre capacity facility is the largest biodiesel plant in Darwin but was shut down in 2009 as tough market and economic conditions hit.

It is believed Territory want to integrate new feedstock pre-treatment technologies and catalysts however to expand into using different types of palm oil, used cooking oil and tallow.

‘This investment represents the opportunity for us to have a majority equity interest in potentially a very profitable business,’ Lignol CEO Ross MacLachlan was quoted as saying. ‘Our goal remains to work with Territory with a view to restarting the plant in late 2013 with an appropriate project funding package in place.’