Mission NewEnergy will receive a $16 million cash injection from a private placement as it begins commissioning its second biodiesel refinery in Malaysia.
The refinery now is mechanically complete and is being tested with raw materials to ensure biodiesel is produced to specifications.
Perth-based Mission has secured input materials for the commissioning phase from Malaysia's KNM Group Berhad.
The company initially will use crude palm oil as feedstock for the biodiesel plants in Malaysia and also is developing its upstream feedstock business in India, focusing on a drought-resistant perennial plant, Jatropha Curcas.
Mission secured the funds needed for the second biodiesel plant in Malaysia in April through a $5 million equity placement to accredited international investors, following a $US17 million ($A21.5 million) debt financing.
The co-founder and managing director of KNM Group, Ir Lee Swee Eng, also on Tuesday agreed to invest $US12.325 million ($A16 million) in Mission via subscription for 85 million ordinary shares and warrants.
The investment will be subject to approval at an extraordinary general meeting of Mission shareholders, expected around July 31.
If approved, Mr Ir Lee will be entitled to appoint two directors to the Mission board, one of them an executive director.
Shares in Mission were placed in a trading halt on Monday and last traded at 22.5 cents.
