Singapore-based GUUD Finance has signed a working capital agreement with Australian renewable fuel producer Just Biodiesel, marking the trade technology company’s first foray into green energy.

The two companies signed a short-term US$4mn working capital agreement on May 5, which will see GUUD Finance support the process of purchasing raw materials, converting those into fuel and selling the end product on.

“GUUD Finance takes on a trader role where we will be both a principal and source of working capital in the purchase of tallow, conversion of tallow to biodiesel, and sale of biodiesel, in partnership with Just Biodiesel,” a spokesperson for the company tells GTR.

GUUD Finance, part of a group of companies launched by vCargo Cloud in September 2020, says it plans to help more businesses gain access to trade finance “and to drive greater sustainability through the intelligent financing of green products and services such as biodiesel”.

Desmond Loh, chief executive of GUUD Finance, says sustainability is a “huge priority” for the company.

“Facilitation of green financing will be core for GUUD Finance as we continue our journey to help businesses, big and small, gain access to financing solutions that help meet their working capital needs,” he says.

Just Biodiesel was established in 2018, taking over a biodiesel plant in Barnawartha, a small town in Victoria, Australia. It made its first shipment of fuel produced from plant or animal sources in June the following year.

The two companies have previously collaborated on asset-backed financing, completing their first deal in January this year, and on using internet of things technology to track goods and optimise supply chain processes.

General manager Greg Boyall says GUUD’s “expertise in navigating global trade, use of sophisticated technology to track shipments and monitor goods as well as strong ability to facilitate financing, especially for younger businesses like ours, is invaluable as we focus on growing the business beyond Australian shores”.

GUUD has also been making inroads into trade flows in Africa, last month winning a tender to design a system of digital trade documentation in East Africa through its subsidiary, vCargo Cloud Kenya.

In December last year, the company partnered with New York-headquartered fintech MonetaGo to implement a trade finance fraud prevention solution across Asia.