LEC Acquires Stake in Neutral Fuels to Develop Biodiesel Program for Asia Pacific/Middle East/Africa Region
Lignol Energy Corp. plans to provide funding of A$4,070,000 to acquire a 40 percent equity stake in Neutral Fuels Parent Company (Neutral Fuels) and a 51 percent interest in Neutral Fuels’ Australia and New Zealand biodiesel operation, Neutral Fuels ( Melbourne ) Pty Ltd. (NFANZ).
These funds will be used in the deployment of closed-loop biorefineries throughout the Asia Pacific/Middle East/Africa region as part of the McDonald's Restaurants’ used cooking oil biodiesel program. As part of the existing agreement with McDonald's, Neutral Fuels currently operates two closed loop biorefineries in Dubai, United Arab Emirates and Melbourne, Australia .
"Neutral Fuels has developed world-class biorefineries employing state-of-the-art processing technology which has established them as an emerging leader in the niche of small scale biofuel operators," said Ross MacLachlan, CEO and Chairman of LEC. "We are excited to be involved in this commercial venture. Their novel business model and collaboration with McDonald's is an attractive and sustainable model both in terms of the environment and in commercial terms."