Valero signs contract with Mission NewEnergy

U.S. refiner Valero Energy signed a five-year biodiesel supply contract with Australia’s Mission NewEnergy, the Financial Times reported. Under the agreement, Valero obtained the right to purchase up to a 25% stake in Mission at A$0.45 (US$ 0.41) per common share. The price represents a 61% premium to the Australian group’s latest 30-day price. Mission will supply Valero with as much as 200,000 tons of biodiesel a year starting in the second quarter of 2010. The deal could bring Mission revenues in excess of US$3.5 billion, based on current market prices and if the maximum volume is provided for the full term of the contract. (December 11, 2009)