The commissioning process involves the running of the plant with actual raw materials in order to ensure on-specification production of biodiesel. Axens, the technology provider of Mission NewEnergy’s second biodiesel refinery guarantees the on-specification production of biodiesel.
In order to supply necessary input materials (e.g. crude palm oil), Mission NewEnergy has negotiated a commissioning assistance contract with the Turn Key Contractor KNM Group Berhad.
Under the terms of the agreement in consideration for supplying raw materials pursuant to commissioning of the plant, which was previously the obligation of Mission NewEnergy, the company has agreed to extent the completion period to July 31, 2009, thus waiving any currently accrued liquidated damages (note LD’s will accrue should the commissioning process go beyond July 31, 2009) and Mission NewEnergy will also work with KNM exclusively for operations and maintenance and EPCC services in the future on mutually agreeable terms.
