N@N

Mission NewEnergy Commissions Axens Biodiesel Trans-Refinery

^{Published on 2010-05-27 23:20:22 - Market Wire}
 

SUBIACO, AUSTRALIA--(Marketwire - May 28, 2010) - Mission NewEnergy Limited (ASX: [ MBT ]), a vertically integrated biodiesel producer, announced today that commissioning of its second 250,000 tons-per-annum (approximately 75 million gallons per annum) Axens 2nd Generation biodiesel trans-esterification refinery has been completed.

During the performance tests, the plant achieved its nameplate capacity and met all guaranteed performance parameters. The biodiesel produced during the performance test has been evaluated by an internationally renowned external laboratory and the results exceed the European EN14214 specification for Biodiesel.

Mission is in discussions with its turnkey contractor, KNM Process Systems Sdn Bhd, to finalise the handover of the plant to Mission. All approvals and licences required to operate the plant have been secured.

As announced on 26 November 2009, an additional new process capable of producing different "cuts" of biodiesel is being incorporated into our refinery operations. This is a stand-alone unit which will serve both our refineries, and will enable Mission to become one of the few biodiesel producers in the region who can meet the Cold Soak Filter Test (CSFT) requirements under the revised ASTM D6751:2009 biodiesel specification.

Nathan Mahalingam, Group Managing Director of Mission NewEnergy, said that, "The addition of the 250,000 tpa production capacity is key to our strategy of becoming a high-volume, low-cost producer of biodiesel and best positioned to achieve profitability even where market conditions yield inconsistent refining spreads. It is also critical to enabling Mission to achieve long-term off-take agreements with market leading firms such as Valero, a recently announced customer. Our focus is on achieving scale and further vertical integration which will help us to increase efficiency and manage commodity prices and supply risks. We will continue to work with our customers and partners to develop innovative strategies for creating new opportunities in the biodiesel value chain."

Mission expects to begin producing under the Valero contract once the U.S. Environmental Protection Agency has accepted palm oil as an approved pathway for Green House Gas emission, and therefore eligible for Renewable Identification Number (RINS). The EPA has stated that it expects to complete its ruling by in 2010.