Canadians buy into Oz biodiesel

Canadian biofuels developer Lignel Energy Corporation (LEC) has become a strategic shareholder in Australian Renewable Fuels (ARF) under a share deal with ARF shareholder Wasabi Energy.
Under the deal, LEC will pay around $4.5 million for 275 million shares in ARF, which produces biodiesel from plants in WA, SA and Victoria. ARF has a current market capitalisation of just under $35 million.
In turn Wasabi will emerge with just under 20 percent of LEC, giving the ASX and London AIM-listed company a stake in both the Canadian and Australian biofuels industries.
“Lignol has an impressive technology backed by an advanced pilot plant, a strong intellectual property portfolio and capable management team that we feel positions the company to become a transformative participant in the emerging renewable fuels and chemicals industry,” stated Wasabi executive chairman Mr John Byrne.