BioDiesel in the News: Investors kill Jupiter biodiesel spin-off

Investors kill Jupiter biodiesel spin-off
The West Australian - Perth,Western Australia,Australia
Jupiter Energy has abandoned its $75 million biodiesel spin-off, after a strong downturn in investor support for alternative fuels. ...

Jupiter Energy has abandoned its $75 million biodiesel spin-off, after a strong downturn in investor support for alternative fuels.

The company had planned to list subsidiary Jupiter Biofuels on the Australian Stock Exchange by the end of November, with the cash earmarked for the development of a biodiesel plant in Malaysia.

But chairman Eddie Smith said yesterday a recent investor swing against biodiesel had prompted the withdrawal of the float.

“The market is very much sentiment-driven and this sort of an item is very much in favour one minute and out of favour the next,” he said. “Our project is very viable but to actually get the institutions to commit is very difficult when one or two of our competitors has diminished in share prices and no one feels comfortable.”

Investors reacted to the announcement by shaving 18 per cent, or 1.8¢, off Jupiter’s shares, which fell to 8.2¢.

Mr Smith said the death-knock for the biodiesel float had been a warning of a bigger-than-expected loss from competitor Australian Biodiesel Group last week, after poor performances from other pioneers.

“Even up to that moment there was still quite a number of supporters, that was the one that killed it . . . support just flooded away,” Mr Smith said.

Jupiter Energy would still develop the 250,000 tonnes-a-year plant but funding was being discussed, he said.

Click Here to Make $20-$75/Hour for Your Opinion