Jupiter Energy sells biofuels site for $1m

THE biofuels bubble has burst for West Perth-based Jupiter Energy Ltd, which last week announced plans to sell its Malaysian subsidiary, Jupiter Biofuels Ltd, for $1 million. The decision comes just three months after the collapse of the company’s proposed $75 million spin-off of the project, capitalising on what had been one of the hottest sectors on the stock market in 2006. Jupiter said in an announcement that it was disappointed that the project was not able to get support from Australian capital markets. “The board has spent several months looking for alternative funding options without success and now believes that this outcome is in the best interests of (Jupiter) shareholders,” the company said. Malaysian company FEI Resources Sdn Bhd will buy 100 per cent of a wholly owned subsidiary of Jupiter, which holds all the various licences and contracts pertaining to the Malaysian project – Jupiter Biofuels Sdn Bhd – for five monthly payments of $50,000, as well as a $750,000 payment on or before July 21 this year.