Mission achieves ISCC certification, loses contract with Chevron
Australia-based Mission NewEnergy Ltd. has entered into a long-term supply agreement with Felda Global Group, a Malaysian palm oil producer. The two companies have established Asia’s first fully integrated International Sustainability & Carbon Certification System certified palm biodiesel supply and production chain.
Mission’s 100,000 ton (30 MMgy) biorefinery in Kuantan is the first biodiesel plant outside of Europe to achieve full ISCC certification. To date, Felda has completed ISCC certification of two mills and eight palm oil plantations.
The ISCC program is designed to guarantee the sustainability of certified biomass and biofuel sources. The program aims to reduce greenhouse gas emissions, ensure land is sustainably used, protect natural biospheres and achieve social sustainability. The certification system complies with the EU’s Renewable Energy Directive and is currently required for all companies that supply biofuels to Germany. According to Felda President Dato Sabri Ahmad, ISCC certification will provide his company with an edge to compete in the international market.
“Mission and Felda’s certification constitute full supply chain carbon emissions reporting to demonstrate compliance with German and European GHG savings targets”, said Nathan Mahalingam, group CEO of Mission. “The certification is important to Felda Global Group as it has identified renewable energy as a new focus area to enhance revenue by monetizing byproducts from palm oil.”
Under the agreement formed by Mission and Felda, the two companies plan to work together to achieve ISCC certification for additional Felda mills and plantations, further expanding the available supply of ISCC-certified biodiesel produced at Mission’s biorefineries.
In early March, Mission also announced that Chevron Venture Technologies terminated a tender contract with the company, which had been announced in February. Under the contract, Mission was to supply Chevron with 3,000 gallons of crude jatropha oil for use in Chevron’s exploration of long-term use of the feedstock in renewable diesel production. “We understand that upon successful completion of tests, Chevron is interested in long-term supply agreements,” said Garton on Feb. 15 as part of the announcement.
However, Mission announced the contract had been cancelled on March 2. “The contract entered into with Chevron provided for termination at any time and for any reason,” said Mission in a statement. “Mission understands that the reasons for termination pertain to certain disclosure issues relating to the contract.”
On March 15, Mission filed a registration statement with the U.S. Securities and Exchange Commission for an initial public offering of shares in the U.S. According to the statement, Mission has applied for a listing of its ordinary shares on the NASDAQ Global Market under the symbol “MNEL.” Ordinary shares of the company are currently listed on the Australian Securities Exchange under the symbol “MBT.” The company is currently seeking shareholder approval for a 50-1 share consolidation of its ordinary shares, and expects the initial public offering price to in the $12 to $14 range.