Mission customer halves biodiesel sales

A major customer for Mission NewEnergy Ltd. has offered nearly US$2 million in compensation as it requested its take-up of biodiesel be halved. In an announcement released in early April, Mission said the customer, who asked not to be named, would now buy 36% of biodiesel produced at its Malaysian plant for the remainder of the 2009 calendar year, down from 7%. In exchange, the customer has offered US$1.24 million as compensation. Mission said it is remains in discussion with the same customer for new biodiesel orders for 2010. According to Mission Managing Director Nathan Mahalingam, the sale was an excellent opportunity to find alternative customers for the released capacity. “This move will also provide us with spare capacity to sell into the Malaysian biodiesel mandate which is expected to come into force in the last quarter of 2009,” he said. (April 7, 2009)