Viridas (LON:VIR) is set to supply an unnamed UK energy generator with 240,000tpa (tonnes per annum) of sustainable biomass for electricity generation. The company said that it now has potential revenues worth up to US$1bn over a ten year period.
The parties have signed a Strategic Development and Partnership agreement, which Viridas expects to lead to a sustainable biomass offtake deal. The company already has a major offtake agreement in place with INEOS – one of the world’s largest chemical and petroleum distillers - to supply 450,000 barrels of biooil.
“The future signing of a biomass offtake agreement with an important major electricity generator for the annual purchase of 240,000 tonnes of biomass, coupled with the bio-oil agreement already in place ... will give Viridas gross revenue potential in the region of US$1 billion over the next ten years,” Viridas Chairman Stanley Wootliff commented.
"Having two very credible development partners ... will enable us to crystallize our development programme and establish Viridas as a leading producer of truly sustainable, renewable dedicated bio-fuels,” he added.
In Brazil, Viridas is developing a jatropha curcas plantation - a dedicated energy crop with average 30% oil content of over 30%, which can be processed into biofuel - which is expected to begin commercial production in 2013. The company notes that it is implementing an owner/operator plantation model, which has proven successful for other listed plantation companies.
Jatropha curcas crops can be used to produce biomass and biooil for the production of bio-diesel and bio-kerosene. The company will process the biomass, from the Jatropha curcas seeds, into crushed ‘seed-cake’, in a facility in the UK.