Viridas signs new partnership with UK generator
BIO-ENERGY firm Viridas believes a deal to supply a UK energy company with 240,000 tonnes of biomass every year could open the door to revenues of almost £700m over ten years.
Viridas grows bio-energy crops on plantations in Brazil and the company expects the partnership will lead to the signing of an “off take” agreement.
The Yorkshire-based firm has already signed a similar agreement with INEOS, the largest independent distiller of petroleum products in Europe which will buy Viridas’s planned annual production of 450,000 barrels of bio-oil.
Viridas chairman Stanley Wootliff said: “The future signing of a bio-mass “off take” agreement with an important major electricity generator for the annual purchase of 240,000 tonnes of bio-mass, coupled with the bio-oil agreement already in place with INEOS, will give Viridas gross revenue potential in the region of $1bn over the next ten years.
“Having two very credible development partners, together with $1bn of contracted forward sales, will enable us to crystallize our development programme and establish Viridas as a leading producer of truly sustainable, renewable dedicated bio-fuels.”
The bio-mass will come from the seed cake produced by Viridas by crushing the seeds of the energy crop jatropha curcas to produce both bio-mass, for the electricity generating industry, and bio-oil, for the production of bio-diesel and bio-kerosene for the road and air transport industries.
Viridas is expecting to bring commercial production on stream in 2013.
