Policy gap damages Viridas investment search
BIO-ENERGY firm Viridas has warned that lack of clarity from the Government on energy policy is harming its efforts to secure new investment.
The company, which grows bio-energy crops on plantations in Brazil, today reported an operating loss of £294,101 for the first six months of the year, a marginal improvement on 2009.
Leeds-based Viridas had previously said it was in discussions over securing an additional £1.4m to support the company’s development including the planting of a farm in Braxil.
In a stock market update today, the company said: “The group remains in discussions with a number of highly credible potential investors, and based on the outcome of those discussions the directors are hopeful that future funding will be made available.
“However, in the current economic climate, and the lack of clarity from the Government regarding future support for the reduction of green house gas emissions in the UK, it is proving challenging to bring such discussions to a close.
“Accordingly the directors have decided that without tangible investor commitment by the end of the year the feasibility of an ongoing jatropha project would have to be reviewed.”
The company said it would be cutting directors’ pay and other overheads where possible and would not be commiting to new projects before funding had been secured.
“The directors continue to believe that environmental, geo-political and economic considerations will provide opportunities for a successful jatropha project and will continue to work hard to seek the additional funds needed to achieve the realisation of the group’s strategy,” the company said.
