LONDON (ShareCast) - (Sharecast News) - 80 Mile announced three new memoranda of understanding with major energy companies on Tuesday, and a move to full ownership of its Ferrandina biofuels facility in southern Italy, in a bid to strengthen the site's commercial outlook and supply chain for sustainable fuels.
The AIM-, FSE- and OTC-listed renewable energy group said its 100%-owned subsidiary Greenswitch had agreed an MoU with a Fortune 500 integrated energy company to supply up to 80,000 tonnes per year of renewable feedstocks, including palm oil methyl ester and repurposed used cooking oil, starting from November.

Deliveries would be made to the port of Taranto, around 70 kilometres from Ferrandina, ensuring a reliable input stream for biodiesel and sustainable aviation fuel (SAF) production.

Greenswitch also signed a tolling MoU with Italian energy firm Ludoil Energia under which Ludoil will provide feedstock and Hydrogen Valley, 80 Mile's operating subsidiary, would earn revenue purely from processing.

The deal, which would eliminate feedstock working capital risk, was expected to generate about €8m in annual net profit for Hydrogen Valley once production starts in January, with a plant restart targeted for December.

It said the agreement would secure around half of Ferrandina's permitted 150,000-tonne capacity.

A third MoU was signed with JEnergy of Rome for the supply of biodiesel and bioliquids from January, expanding to SAF and hydrotreated vegetable oil from 2027.

The agreement would cover around 10,000 tonnes per year in the initial phase.

80 Mile said the new deals built on previously-announced agreements with Nacata Commodities and Tecnoparco Valbasento, covering additional feedstock, product offtake, and biofuel supply volumes.

Combined, the partnerships reportedly positioned Ferrandina as a key processing hub for low-carbon fuels across Europe, with commitments now covering a significant portion of the plant's capacity.

Alongside the new commercial agreements, 80 Mile said it had completed the move to full ownership of Hydrogen Valley, the entity that controls Greenswitch and the Ferrandina project.

The company paid €0.1m, and would issue 220 million new shares to vendor Greendome Holdings, along with deferred payments tied to future share performance and milestone dates through 2028.

Hydrogen Valley's managing director, Mark Frascongna, would join 80 Mile as chief executive of Italian operations in a non-board role.

"These agreements mark a step change for the Ferrandina facility. Between Ludoil, JEnergy, Nacata, Tecnoparco, and now one of the world's largest integrated energy companies, we have clear evidence of the significant industry interest in SAF and HVO development," said managing director Eric Sondergaard.

"Importantly, the tolling arrangement with Ludoil already secures 50% of the plant's total capacity, ensuring stable revenues while minimising working capital exposure."

He added that the calibre of counterparties "underlines Ferrandina's strategic importance within Europe's renewable fuels supply chain," establishing it as "a key processing hub for biodiesel today and laying the foundation for long-term growth in SAF and HVO."

Admission of the 230 million new shares issued as part of the Hydrogen Valley acquisition was expected on or before 14 November, bringing 80 Mile's total issued share capital to 4.56 billion shares.

At 1414 GMT, shares in 80 Mile were up 5.59% at 0.72p.

Reporting by Josh White for Sharecast.com.

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