NexGen revises biofuel plans
US-based NexGen Biofuels has revised its biofuel plans following its inability to raise funds and adverse changes in the market.
The company aims to build a 10 million gallon storage and blending terminal in the US. It also intends to blend 10% ethanol with petrol and distribute E10 as well as blending 2% biodiesel with diesel and distribute B2.
NexGen’s strategy is to develop, construct and/or acquire ethanol and biodiesel plants with aggregate capacity of up to 100 million gallons each.
The ethanol plants will be corn-based dry mill fuel-grade ethanol plants located in Arkansas, Indiana, Ohio, Wisconsin and other states in the US. The biodiesel plant will use palm and/or soyabeans as well as animal fats.
‘In order to be responsive to changing market conditions in the ethanol and biodiesel industries, we will consider acquiring existing ethanol and biodiesel plants rather than constructing new plants, if we are able to make such acquisitions at favorable enterprise valuations and have access to reasonable financing terms,’ the company states.
‘We have executed non binding letters of intent, which are expired now, to acquire the majority interest in two separate ethanol production facilities, which NexGen intends to acquire following receipt of phase-II financing.’
The company adds it has limited financial resources and is entirely dependent on funds that will be raised from third party financing sources for working capital purposes and for the development of the blending terminal, the ethanol and biodiesel plants.
The goal is to raise $25 million (€19 million) and $63 million, using different financial instruments in order to fund the first two phases of its business.
The company aims to build a 10 million gallon storage and blending terminal in the US. It also intends to blend 10% ethanol with petrol and distribute E10 as well as blending 2% biodiesel with diesel and distribute B2.
NexGen’s strategy is to develop, construct and/or acquire ethanol and biodiesel plants with aggregate capacity of up to 100 million gallons each.
The ethanol plants will be corn-based dry mill fuel-grade ethanol plants located in Arkansas, Indiana, Ohio, Wisconsin and other states in the US. The biodiesel plant will use palm and/or soyabeans as well as animal fats.
‘In order to be responsive to changing market conditions in the ethanol and biodiesel industries, we will consider acquiring existing ethanol and biodiesel plants rather than constructing new plants, if we are able to make such acquisitions at favorable enterprise valuations and have access to reasonable financing terms,’ the company states.
‘We have executed non binding letters of intent, which are expired now, to acquire the majority interest in two separate ethanol production facilities, which NexGen intends to acquire following receipt of phase-II financing.’
The company adds it has limited financial resources and is entirely dependent on funds that will be raised from third party financing sources for working capital purposes and for the development of the blending terminal, the ethanol and biodiesel plants.
The goal is to raise $25 million (€19 million) and $63 million, using different financial instruments in order to fund the first two phases of its business.
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