An Australian biodiesel producer is expanding its reach, this time to Dubai on the Arabian Peninsula. Lignol Energy Corp. is paying $3.73 million to acquire 40 percent of Neutral Fuels Parent Company and a 51 percent interest in Neutral Fuels’ Australia and New Zealand biodiesel operation. As you might remember from earlier this summer, Neutral Fuels currently operates two closed-loop biorefineries located in Dubai, United Arab Emirates and Melbourne, Australia, and the Dubai facility makes biodiesel out of used cooking oil from McDonald’s restaurants.

“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,” said Karl W. Feilder, CEO and chairman of The Neutral Group. “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.”

Neutral Fuels’ closed-loop business model was developed specifically for McDonald’s. The supply trucks in the UAE have driven more than a million miles on Neutral Fuels B100 biodiesel.