10 March 2014
China New Energy Ltd Monday said it has won a deal to build a second biorefinery for Ubon Ethanol Co Ltd in Thailand.
The new memorandum of understanding covers the construction of a new refinery to replace an existing biorefinery converting cassava feedstock into 100,000 tonnes a year of anhydrous fuel grade ethanol. The build is expected to start in late 2014 and complete in 2016.
China New Energy said the deal is worth about RMB100 million, or GBP10 million.
The first biorefinery that China New Energy built for Ubon was formally opened in December 2013.
Late last month, China New Energy terminated talks to buy BAPP Ethanol Holdings Ltd after it had found during due diligence that it would have had to raise significant funds due to the deal. Monday, it said it remains in talks with BAPP’s owners about providing technical expertise for its “distressed” operating biorefinery business.
China New Energy shares were up 14.6% at 4.27 pence early Monday, one of the biggest increases on the London market.