Principle Energy pursues Mozambique ethanol plant
Renewable energy company Principle Energy plans to start building a $290 million (€224 million) bioethanol plant in Mozambique in 2009.
Principle Energy, in which London-listed fund manager Principle Capital has a stake, raised $70 million towards the project in 2007.
To date this year it has held back from raising a targeted $90 million due to adverse market conditions.
'Seeing as the business is financed into 2009 we have decided to wait for more opportune timing,' Raymond Greaves, the company's MD for Europe, comments.
The company is confident it will raise the remaining $130 million and possibly more through loans from banks.
The Mozambique government approved planning permission in Q2 2008 to allow for the construction of the plant near Dombe town, 125 miles west of Beira port.
The plant, using sugarcane as feedstock, is expected to start operating by 2011 and should produce 60 million gallons of ethanol a year.
Principle Energy has said the investment would create 2,500-4,000 jobs, and cane yields are expected to be over 50% higher than the Brazilian average, due to the relatively high quality of soils, climate and irrigation.
After completion, the ethanol plant is expected to serve biofuel markets in Europe and North America.
Principle Energy, in which London-listed fund manager Principle Capital has a stake, raised $70 million towards the project in 2007.
To date this year it has held back from raising a targeted $90 million due to adverse market conditions.
'Seeing as the business is financed into 2009 we have decided to wait for more opportune timing,' Raymond Greaves, the company's MD for Europe, comments.
The company is confident it will raise the remaining $130 million and possibly more through loans from banks.
The Mozambique government approved planning permission in Q2 2008 to allow for the construction of the plant near Dombe town, 125 miles west of Beira port.
The plant, using sugarcane as feedstock, is expected to start operating by 2011 and should produce 60 million gallons of ethanol a year.
Principle Energy has said the investment would create 2,500-4,000 jobs, and cane yields are expected to be over 50% higher than the Brazilian average, due to the relatively high quality of soils, climate and irrigation.
After completion, the ethanol plant is expected to serve biofuel markets in Europe and North America.
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