The company, which formally changed its name from Australian Ethanol last Friday, January 26, today said it had signed the $US33 million ($A42.7 million) senior debt facility for the development of the project. In addition, its equity raising of $A40 million has been approved by shareholders.

Melbourne-based Agri said the senior debt facility is a 10-year loan package of $US28 million plus a $5 million working capital facility.

The company said 95% of the Beatrice Biodiesel project is now complete, with all major equipment ordered and a majority of the site contracts awarded. More than 15% of construction has been completed.

Chairman and chief executive Peter Anderton said the signing of the senior debt documentation enables the group to advance to cash flow later in the year.

“The company can now consolidate on other strategic plans and opportunities in Australia, the United States and Europe,” he said.

Last September, Agri terminated a $30 million loan with US investment group Amaranth to fund construction of the 50 million gallon per year plant.

At the time, the company said it was forced to re-negotiate the convertible note package with Amarath, after the lender announced “substantial trading losses”.

Anderton said despite the difficulties, he was pleased the company was able to secure ongoing support of its bankers and shareholders to “take the group forward” to biofuels production.

Agri said the project is on budget and scheduled for biodiesel production in September.

It is set to become the largest biodiesel facility in the US.