Lignol increases its share of Territory Biofuels Ltd. for $950,000
TBF owns the largest biodiesel plant in Australia, restarting it in 2014.
VANCOUVER — Lignol Energy Corp., an advanced biofuels and renewable chemicals company, is investing up to a further $950,000 in Territory Biofuels Ltd. (TBF), the owner of the largest biodiesel plant in Australia.
This will increase Vancouver-based Lignol’s majority holding to about 66% of the issued and outstanding shares of TBF and up to 68% on a fully diluted basis.
“Our goal remains to work with TBF with a view to restarting the plant in late 2013 with an appropriate project funding package in place. Once operational, we plan to incorporate plant upgrades to process lower cost feedstocks that should further enhance margins in 2014,” said Ross MacLachlan, CEO and chairman of Lignol in a release.
The transaction is subject to regulatory approval.
TBF owns a large-scale bio-refining facility in Darwin, Northern Territory that includes a Lurgi-designed biodiesel plant and the largest glycerine refinery in Australia.
The $76 million plant, originally built to run on palm oil and food-grade vegetable oil, was commissioned in 2008, along with 38 million litres of related tankage now leased by TBF. It’s the largest in Australia with a capacity of 140 million litres per year.
It was shut down in 2009 due to economic and market conditions. TBF is now raising funds to restart the plant using an environmentally certified Refined Bleached & Deodorized (RBD) palm oil.
TBF says in 2014 it 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.