The Biodiesel Alicante S.L. company is demanding compensation of 143.7 million euros from Alicante City Hall for being finally refused a licence to operate in the city’s port.

It is the largest claim ever placed against Alicante City Hall which, if won, would wreck the municipal budget which is only 255 million for the year. The main shareholder in Biodiesel Alicante is Jiménez Belinchón, who owns other biodiesel plants in Spain, such as in Gijón.

The figure of 143.7 million was reached by an auditor who separated the amount being claimed into lost income in the years 2005-2007. The company claims it invested ‘many millions’ in the project which had previously obtained the go-ahead from other authorities, including the Port Authority. The bulk of the claim, 122.3 million, is for the cancellation of a contract to purchase soya bean oil, which Biodiesel have already entered into.

In response to the claim, the council states that it rejected the license because it lacked two mandatory reports, one of which was “permission to manufacture and distribution of hydrocarbons and also that of the electricity sector.” Also a building necessary to house machinery exceeded the size permissible under the Port Plan. The council insist that licensing is strictly regulated and therefore the licence could not be granted because of the missing reports. In essence, the council says Biodiesel jumped the gun and committed themselves financially in anticipation that the licence would be granted, which is their fault and not that of the council.

Courtesy of the www.costablancaleader.com