New floats driven by bio diesel

THE flurry of activity in the growing biofuels sector continues apace, with Perth-based Mission Biofuels Ltd closing its initial public offer early and another local player, Jupiter Energy, announcing plans to raise $5.5 million. Bio diesel company Mission Biofuels will raise $27 million through its offer to progress plans to construct a 100,000-tonnes-per-annum bio diesel plant in Malaysia, using crude palm oil as its primary feedstock. Strong institutional investor interest resulted in the offer being significantly oversubscribed and closed this weekday, well ahead of the scheduled closing date of May 4. Australian Stock Exchange-listed Jupiter Energy recently also announced capital raising plans, in two tranches, to raise $5.5 million to develop its own bio diesel plant. It, too, is considering constructing a facility in Malaysia, and has finalised an option to lease six hectares of land for the building and has also applied to the Malaysian Industrial Development Authority for a licence to produce bio diesel. Funds raised by the company will also be used to provide working capital, and pursue other potential acquisitions. The biofuels industry has generated significant impetus over recent times, as concerns over rising oil prices and environmental concerns have contributed to a raft of local companies embarking on capital raising plans to produce viable alternative energy sources – most notably bio diesel and ethanol.