Territory Biofuels signs feedstock MOU with Milio International

Lignol Energy's subsidiary, Territory Biofuels, recently signed a memorandum of understanding with Milio International for the development of a joint venture for feedstock and marketing.

The JV will see Milio fund up to 120,000 tonnes of feedstock per year and facilitate the marketing and sales of the production from Territory Biofuels' 140 million litre per year (37 MMgy) biodiesel plant in Darwin, Australia.

Lignol says at full production capacity this funding is expected to provide working capital funding of approximately $25 million (€18.1 million).

The company says Milio will receive 25% of the net profits earned on the sale of related production. Milio has agreed to assist in the restart of the Darwin plant with funding of 1,500 tonnes of feedstock for an initial startup campaign, and up to 10,000 tonnes for an initial commercial campaign.

In addition, Milio will receive funds to cover its costs and also the provision of $600,000 in shares of LEC or cash by mutual agreement.