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Sunoil buys scandal-hit Dutch Kampen biodiesel plant

London — Netherlands-based used cooking oil biodiesel (UCOME) producer Sunoil has bought the plant of scandal-hit fellow producer Biodiesel Kampen, signing the contract Wednesday.

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Sunoil has bought the real estate belonging to Biodiesel Kampen but not the legal entities and plans to start production in the first or second quarter of 2020, company spokesman Kees Jongsma told S&P Global Platts. The production capacity of the plant is set to be 80,000 mt a year. Financial details of the sale were not disclosed.

The Kampen biodiesel plant was put up for sale this year after Kampen was declared bankrupt on August 26. The owner, Cees Bunchoten was jailed in August of this year for 30 months -- 10 of which are suspended -- for forging documents, fraud and money laundering.

The court cases against the former owner are not over yet, with his company accused of selling non-sustainable biodiesel as sustainable.

Market have said the Kampen plant would make a good investment due to its location and modern equipment.

This investigation had led to a large increase in prices of UCOME in Europe, which was linked to a lack of availability because of the uncertainty caused by the Kampen case. However, prices have now leveled out, market sources say.

--Huw Shortland,

--Edited by Jonathan Dart,