The funding being raised will enable the SPV to acquire the necessary licenses and equipment to produce up to 130,000 tones of compressed wood pellets per annum. Investment is required late Q3 2012 with production scheduled to begin Q1 2013.
Wood pellets are an efficient biofuel and are becoming increasingly popular as small and large commercial organizations seek to reduce emissions in line with current legislation. These pellets can also be used as fuel for co-fired and dedicated biomass power generating plant and can reduce carbon emissions dramatically.
Samples of the wood pellets from this project have been tested both by the producer as well as through independent analysis and in both cases the calorific value has been shown to be suitable for burning as commercial biomass.
The project has access to 2,500,000 palm trees on a 27,000-hectare (ha) parcel of land. Permits are in place to remove these trees from the area.
The project developer has a track record of delivery in the commercial field in a number of sustainable projects. The core management team has vast experience, with senior members established in the country. The pellet plant designer has specified and managed several installations throughout Europe.
The project also benefits from high-level government and community support, plus established commercial links.