Mission on track for 2nd biodiesel plant

Mission NewEnergy says it has secured debt funding for its second biodiesel facility in Malaysia as it revises the commissioning start up date.

In an update to shareholders today, the company said commissioning of the 250,000 tonne per annum plant has been scheduled for the end of March, a four-month delay from the original start up date of November.

Mission said the delay relates to construction rather than technology issues.

The company already operates a 100,000tpa facility with most of the plant's capacity for calendar 2009 sold to major global oil and biofuels players.

"The company is in advanced discussions with potential customers and anticipates its second facility to operate at near full capacity in 2009," Mission said.

"Demand for finished product is expected to come from Europe, Malaysia, India, the USA and Australia."

The company added that is will need around $20 million to complete and commission the second biodiesel facility, to be met by either further equity capital or long-term-debt.

Mission said it had raised the necessary capital via "favourable long-term debt" however it is also in discussions with equity providers.