Proactive Investors - Run By Investors For Investors

Viridas’ latest biomass partnership may take future revenues up to US$1bn

Viridas’ latest biomass partnership may take future revenues up to US$1bn

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.

View full RGO profile View Profile

Riverfort Global Opportunities PLC Timeline

Newswire
January 24 2012

Related Articles

healthcare
June 20 2019
The trust thinks valuations “look very attractive” in a number of healthcare sub-sectors that it invests in following a recent sell-off
dispensary
July 03 2019
The Canadian company's investment strategy is simple and focused on EBITDA positive, vertically integrated operators with large addressable markets

© Proactive Investors 2019

Proactive Investors Limited, trading as “Proactiveinvestors United Kingdom”, is Authorised and regulated by the Financial Conduct Authority.
Registered in England with Company Registration number 05639690. Group VAT registration number 872070825 FCA Registration number 559082. You can contact us here.

Market Indices, Commodities and Regulatory News Headlines copyright © Morningstar. Data delayed 15 minutes unless otherwise indicated. Terms of use