The Perth-based company today said in agreement with lead broker Bridges Financial, it had decided to withdraw the prospectus to float Jupiter Biofuels, a planned 250,000 tonne per annum biodiesel plant in Kuantan, Malaysia.

Jupiter Energy also said it would withdraw the annual general meeting resolution to approve the in-specie distribution of the plant.

The company will now postpone the November 10 AGM to a later date to ensure all documentation relevant to any resolutions pertaining to a capital raising in Jupiter can be sent to shareholders before the meeting.

Jupiter Energy said the board decided on another approach to funding to make sure the Malaysian biodiesel project goes ahead.

“The directors believe that the project is extremely viable and will generate significant value for shareholders but to ensure the project remains on track, funding of some $40 million to $50 million will need to be secured before the end of 2006,” the company said.

Jupiter Energy said any additional funding needed would be used to purchase the initial inventories necessary to commission the new plant and begin commercial biodiesel production.

It is expected these funds will be required in November or December 2007, the company said.

Jupiter Energy is one of three Australian biofuel companies currently planning to build biodiesel plants in the South-East Asian country that would use palm oil as feedstock.

Until mid-2005, Jupiter Energy was known as West Coast Mining. In June last year, it changed its name and focus to become an energy company.

Following a lack of success in its Victorian oil and gas operations, undertaken in partnership with Lakes Oil, Jupiter Energy moved into the Malaysian diesel-from-palm oil sector.