Canadian Biomass Magazine

From Big Mac to big truck Down Under

September 5, 2013
By Scott Jamieson

September 5, 2013, Vancouver, BC - A Vancouver-based biofuels company is investing in a biodiesel operation in New Zealand and Australia that turns McDonald's used cooking oil into fuel for its delivery trucks.

Lignol Energy Corporation (LEC), a technology company in the advanced biofuels and renewable chemicals sectors, today announced that it will provide funding of A$4,070,000 to acquire a 40 per cent equity stake in Neutral Fuels Parent Company and a 51 per cent interest in Neutral Fuels' Australia and New Zealand biodiesel operation, Neutral Fuels (Melbourne) Pty Ltd. (NFANZ). This funding is for the deployment of the next phase of a planned roll-out of closed loop biorefineries throughout the Asia Pacific/Middle East/Africaregion ("APMEA") in an agreement with the McDonald's Restaurants used cooking oil biodiesel program.  Under the agreement with McDonald's, Neutral Fuels currently operates two closed loop biorefineries located in Dubai, United Arab Emirates and Melbourne, Australia.

Neutral Fuels' closed loop business model, which was developed specifically for McDonald's, takes used cooking oil from its local restaurants and in return provides B100 biodiesel to fuel its suppliers' delivery fleets.

"Neutral Fuels has developed world-class biorefineries employing state-of-the-art processing technology which has established them as an emerging leader in the niche of small scale biofuel operators", said Ross MacLachlan, CEO and chairman of LEC.  "We are excited to be involved in this commercial venture.  Their novel business model and collaboration with McDonald's is an attractive and sustainable model both in terms of the environment and in commercial terms."

"Partnering with LEC is the logical next step for Neutral Fuels. Our current technology is able to efficiently convert used cooking oil to biodiesel today, and LEC's next generation technology provides us with some exciting options for the future." said Karl W. Feilder, CEO and chairman of The Neutral Group.


Neutral Fuels current management team will continue to manage all of the operations with support as required from LEC. The closing of this transaction is conditional upon regulatory approval.

About Neutral Fuels
Neutral Fuels owns and manages biorefineries that convert used cooking oil into biodiesel, the modern, sustainable replacement for fossil diesel. On a lifecycle basis, biodiesel accounts for over 80% reduction in carbon dioxide and equivalents, the major contributors to climate change. Neutral Fuels pioneered the closed loop business model which was developed specifically for McDonald's, where used cooking oil is collected from McDonald's restaurants by the same vehicles that deliver the fresh oil. The used oil is then back hauled to the co-located Neutral Fuels biorefinery where it is converted, litre for litre, into biodiesel, which is then pumped back into the delivery fleet in an ongoing recycling process.

In Dubai, used cooking oil is collected from more than 100 McDonald's UAE restaurants each month and their fleet of supply trucks in the UAE has to date driven more than 2 million kilometres on Neutral Fuels B100 biodiesel.  In Victoria, Australia the Neutral Fuels biorefinery currently services the used cooking oil from more than 140 McDonald's restaurants.

Neutral Fuels, headquartered in Dubai, UAE, is a member of The Neutral Group, the international cleantech organisation founded in 2006 to build sustainability strategies for the logistics, energy and hospitality industries and to execute significant reductions in energy spend and CO2 emissions. CEO and founder, Karl W Feilder, won the Asian Sustainability Leadership Award in September 2012 and was awarded Innovator of the Year 2011 by LOG Magazine for his work in carbon savings in the Middle East. For more information please visit

About Lignol Energy Corporation ("LEC")
Lignol Energy Corporation is an emerging producer of biofuels, biochemicals and renewable materials from waste biomass.  LEC is actively involved in the management of its wholly owned subsidiary Lignol Innovations Ltd. and in the management of Territory Biofuels Limited, in which it has a controlling interest, but has no influence over the activities of Australian Renewable Fuels Limited.  The Company intends to invest in, or otherwise obtain, equity interests in energy related projects, which have synergies with the company and have the potential to generate near term cash flow.

Lignol Innovations Ltd. ("LIL")
The Company's wholly owned subsidiary, LIL is a leading technology company in the advanced biofuels and renewable chemicals sector undertaking the development of biorefining technologies for the production of advanced biofuels, including fuel-grade ethanol, and other renewable chemicals from non-food cellulosic biomass feedstocks. LIL's modified solvent based pre-treatment technology facilitates the rapid, high-yield conversion of cellulose to ethanol and the production of value-added biochemical co-products, including high purity HP-LTM lignin. HP-LTM lignin represents a new class of high purity lignin extractives (and their subsequent derivatives) which can be engineered to meet the chemical properties and functional requirements of a range of industrial applications that until now has not been possible with traditional lignin by-products generated from other processes. LIL is executing on its development plan through strategic partnerships to further develop and integrate its core technologies on a commercial scale.

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