Perth-based Mission Biofuels Ltd has signed another exclusive feedstock deal with a government controlled entity in India, through its Indian subsidiary, Mission Biofuels (India) Pvt Ltd.
Mission is rapidly developing its upstream feedstock business in India, which is focusing on a drought-resistant perennial plant (Jatropha Curcas) that grows in marginal/poor soil.
The deal will grant the company long-term access to Jatropha Curcas seeds from already planted lands as well as access to additional land in the district that is to be planted with Jatropha Curcas over the next three years.
The district authority has formed a cooperative federation under the Indian Societies Act, which is owned by the farmers and Jatropha growers in the district which will be managed by the district authority.
The district authority has, from funding received from the state and central governments under various programs, planted over 24.3 hectares of Jatropha Curcas during the last five years.
Under the Agreement, MBIPL has agreed with the district authority and the federation to provide technical inputs and know-how to the Jatropha Curcas farmers; establish nurseries; and to support the newly formed federation in development of land along with effective utilisation of government grants for development of Jatropha.
This will enable MBIPL to gain exclusive access to all Jatropha Curcas seeds harvested in the district and will favorably impact the price MBIPL will pay for the Jatropha Curcas seeds purchased from the Farmers/ Self Help Groups of the federation.
Listed on the ASX but with its operations in Malaysia and India, Mission has commissioned a 100,000 tpa biodiesel plant at Kuantan in Malaysia, and is building a 250,000 tpa biodiesel plant adjacent to it using technology that will initially use Crude Palm Oil (CPO) as the feedstock.
Missions said Jatropha was easy to establish, grew quickly, produced seeds for over 40 years, and more importantly was inedible, with Jatropha Oil ultimately expected to replace CPO as Mission's feedstock for its biodiesel plants.
