China New Energy rockets on Nigeria biofuel deal

29th Oct 2013 09:06

Shares in AIM biofuel technology specialist China New Energy (CNEL) more than doubled on news of a contract to build up to 10 biofuel plants in Nigeria. The company has signed a memorandum of understanding with biofuel refinery developer Sunbird to supply its technology in the construction of a 'flagship' biorefinery in Nigeria, for which it expects to receive around £15m, with the possibility to extend this to further nine biorefineries in a 10-year period. Sunbird, a company owned by CNEL's independent non-executive director Richard Bennett, has planned for the first project to be completed within two years. For the first project, at least, CNEL will supply its proprietary technology for the pre-treatment, fermentation, distillation and dehydration of a cassava feedstock, with a local partner completing the civil engineering and construction of the plant, which will then be run by Sunbird.Shares in CNEL were up 160% to 1.65p at 09:25 on Tuesday.OH