Melbourne-based Agri said the arrangements included California-based Green World Energy Corporation (GWEC) investing $US15 million, putting an enterprise value of $US103 million on the US business of Agri, which will retain an 80% stake.

Proceeds will be used to fund: additional working capital required for Agri’s Nebraska-based Beatrice biodiesel project; additional costs as a result of delays to project start-up; future development projects agreed between Agri and GWEC; and part repayment of loans to Agri.

As part of the transaction; GWEC and Cam-Global LLC will be issued 30 million options in Agri; exercisable at A20c for a two-year term.

GWEC is a recently established alternative energy investing in green energy projects in the US and internationally. It is also part of a group that has significant investments in the solar renewable industry.

Agri said GWEC intended investing further funds into the US biodiesel industry and the global industry as part of the relationship.

“We have been seeking a strong financial partner to support the capital requirements for further development projects (and) GWEC has a strong commitment to alternative energy; particularly solar and biofuels,” Agri chairman and chief executive Peter Anderton said.

“GWEC has access to significant development capital. They are very excited by the immediate prospects at Beatrice as a world-class, low-cost biodiesel producer in the US market.

“With the start-up scheduled for later in the month and current global crude oil prices continuing to escalate, the immediate prospects for the company are very encouraging.”

He said the $US15 million valuation endorsed Agri’s investment into the US biodiesel industry.

Anderton said construction at the Beatrice project continued to proceed well, with the second reactor vessel installed last weekend.

Given favourable weather and progress, the group was on target to complete construction and hand over the start-up to technology supplier Axens at the end of November.

Although it is building its first ethanol plant at Swan Hill, in northwestern Victoria due for start-up in the first half of 2008, and has applied to build a second ethanol plant in the state, Agri last month said its future investment preference lay with the more lucrative US market.