The negotiation, when finalized, will allow Tolao to sell up to 31 million liters of biodiesel from its Cross River State plant generating approximately $9.3m in revenue per year.
This will constitute up to 80% of Tolao’s total production capacity of 37.5 million liters from its first plant.
Under the terms of the agreement, Tolao will sell to JC Neckermann up to 80% of the production for a period of five years and the remaining 20% will be sold domestically in Nigeria.
The Cross River State plant is expected to start commercial operations next year.
