Mission Biofuels reels from high feedstock costs

Mission Biofuels Ltd. says current high feedstock prices make it unviable to produce biodiesel but its wind power business is performing well. Biofuel has been criticized for diverting crops away from food supply, amid growing concern about global food shortages. “This will only be possible if we can secure sufficient quantities of feedstock at reasonable prices or if we are able to achieve higher prices with our off-take partners in both the U.S. and Europe,” the company said. Crude palm oil remains the cheapest vegetable oil as the cost of rapeseed oil and soy oil has increased sharply, the company said. It expects to produce and sell about 4,000 tons of biodiesel in May and is ramping up its production of pharmaceutical grade purified glycerine. The windmills will assist the company to substantially reduce its effective tax rate for its feedstock operations in India this financial year while generating tax-free income by producing saleable electricity for the next decade. (May 7, 2008)