Viridas confident of biofuel growth

YORKSHIRE firm Viridas, which is aiming to develop biofuel from crops in Brazil, has reported an annual loss but said there were “outstanding opportunities” for the business going forward.

The Leeds-based AIM-listed is continuing its development of a 300,000 tonne biofuels project growing sustainable dedicated energy crops in Brazil for the production of bio-mass and bio-oil for the UK market.

Chairman Stanley Wootliff said agreements in place with the business could generate $1bn of revenues.

And he said the company was in negotiations with a potential UK partner which could see the company take off.

Mr Wootliff said: “We are also currently in discussions with a leading UK electricity generator with a view to negotiating an ‘off-take’ agreement for the supply of 240,000 tonnes of biomass per annum.

“If negotiations are successful, this ‘off-take’ agreement will help to establish us as a leading supplier of bio-fuels to both the electricity generating industry and the road and air transport industries in the UK.”

He added: “Despite the current difficult economic conditions and the ongoing debates regarding bio-fuels there continues to be outstanding opportunities for companies growing sustainable dedicated energy crops, based on a sound business model. 

“We will continue to successfully exploit those opportunities, together with our development and ‘off-take’ partners, to deliver a profitable and dynamic business for the benefit of all our stakeholders.”  

For the year ended December 31, 2009, Viridas’s group losses were £565,676, down from £622,117 the previous year.

Last November, Viridas announced a £850,000 share placing as the first stage in an intended £2.25m fund raising. At the year end, the firm had net cash resources of £657,000.

Mr Wootliff added: “We are in continuing discussions with a number of potential investors regarding the provision of the balance so that we can establish a ‘base farm’ in Brazil.”
 
He said Viridas had continued its work in Brazil and Europe developing its owner/operator plantation model for the growing of jatropha trees as a dedicated energy crop for the production of bio-fuels.

Jatropha seeds can be crushed to produce bio-mass and bio-oil.

“The objective is to satisfy anticipated demand from the European electricity generating industry for bio-mass and the European road and air transport industries for bio-oil.
 
“There are three factors propelling the world’s appetite for bio-fuels: geopolitical pressure, environmental concerns and peaking oil production.”
 
Viridas has a 10 year jatropha bio-oil supply agreement with INEOS, the largest independent producer of petroleum products in Europe.