Vancouver-based Lignol Energy Corporation (TSX-V: LEC) is getting into business with Milio International for a joint venture in Australia.
The companies signed a memorandum of understanding on February 13 that will see the Dubai company fund up to 120,000 tons of feedstock annually to go toward the production of biofuel Down Under.
Lignol’s subsidiary, Territory Biofuels Limited, has a plant in Darwin, Australia, which produces 140 million litres of biodiesel each year.
Milio, which will receive 25% of net profits from the sale of related production, is also expected to facilitate the marketing and sales of the plant’s output.
"This joint venture will provide a creative and important funding mechanism for the working capital necessary to make the Darwin project robust and sustainable in the years to come,” Lignol CEO Ross MacLachlan said in a statement.
