10/08/2010 (Mission New Energy Limited) - Mission NewEnergy Limited (ASX:MBT), a vertically integrated biodiesel producer, is pleased to announce that its biodiesel facility in Kuantan Port Malaysia has commenced commercial production of crude palm oil-based biodiesel for a new European Union (EU) based customer. In May 2010, the Company announced that it had commissioned its second 250,000 tons-per-annum (approximately 75 million gallons per annum) facility. The total combined production capacity of its facilities is 350,000 tons-per-annum (approximately 105 million gallons per annum).

Nathan Mahalingam, Mission NewEnergy CEO, stated, “In addition to the current Valero US off take agreement previously announced, we are continuing to work towards additional enduser and off-take agreements into the EU ahead of the new Renewable Energy Directive (RED) which will require that all biodiesel used in the EU from 1st January 2011 has to be compliant with new sustainability laws. We therefore look forward to increase our capacity utilization through 2010 and 2011.

As announced earlier, Mission's wholly owned subsidiary, Mission Biotechnologies Sdn Bhd (MBTSB) became the first biodiesel manufacturer in the world to receive attestation under International Sustainability and Carbon Certification Project (ISCC). The ISCC System has been aproved by the German Government as the first Certification System for sustainable Biomass and Biofuels. As one of the few certified producers, Mission is well positioned to take advantage of the general market shift towards sustainable Biodiesel use in the EU