Valero Energy and Mission sign five-year deal
Valero Energy and Mission NewEnergy have signed a five-year deal to supply 200,000 tonnes of biodiesel a year, which is potentially worth around $3.5 billion (€2.4 billion).
Mission has confirmed that it will supply Valero with jatropha-based biodiesel and palm oil based biodiesel.
Mission NewEnergy said: ‘The increasing demand for biodiesel driven by the Renewable Fuels Standard and coupled with this long-term supply agreement solidifies the US as a key market for Mission going forward’.
The deal helped Mission’s shares rise by around 32%. Valero was also given the rights to buy 25% of Mission at A$0.45 (€0.27) a share.
The first shipment of biodiesel is expected by the end of 2010.
Mission has confirmed that it will supply Valero with jatropha-based biodiesel and palm oil based biodiesel.
Mission NewEnergy said: ‘The increasing demand for biodiesel driven by the Renewable Fuels Standard and coupled with this long-term supply agreement solidifies the US as a key market for Mission going forward’.
The deal helped Mission’s shares rise by around 32%. Valero was also given the rights to buy 25% of Mission at A$0.45 (€0.27) a share.
The first shipment of biodiesel is expected by the end of 2010.
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