LEC to acquire 100% of Territory Biofuels Ltd.
Territory owns the largest biodiesel plant in Australia with an annual capacity of 140 million litres.
VANCOUVER – Lignol Energy Corp. will acquire all of the outstanding and issued ordinary shares of Territory Biofuels Ltd., increase its ownership in the Australian biorefining facility from 55% to 100%.
Territory owns the largest biodiesel plant in Australia with an annual capacity of 140 million litres with plans to re-start operations in the second half of 2014.
Closing of the acquisition is expected by January 31, 2014, at which time Territory will become a wholly owned subsidiary of LEC.
Financial details of the deal have not been disclosed.
Territory’s biorefining facility in Australia’s Northern Territory was commissioned in 2008. It includes a Lurgi-designed biodiesel plant and the largest glycerine refinery in Australia.The plant was originally built to run on palm oil and food-grade vegetable oil, however the plant was shut down in 2009 due to challenging technical and economic conditions.
The company is in the process of raising funds to restart the existing facility utilizing environmentally certified, Refined Bleached & Deodorized (RBD) palm oil.
In 2015, there are plans to integrate new feedstock pre-treatment technologies and catalysts to process a broader range of feedstocks such as lower quality tallow, used cooking oil and palm sludge oil; a waste product from palm oil mill extraction.
Vancouver-based Lignol Energy Corp. is an emerging producer of biofuels, biochemicals and renewable materials from waste. It owns stakes in a number of other bioenergy firms, including full-ownership stake in Lignol Innovation Ltd., 21% of Australian Renewable Fuels Limited, 51% of Neutral Fuels Pty Ltd and 20% of Neutral Fuels Parent Company Ltd.