Africa Renewables (AfriRen), the newly-formed UK-based biomass producer has committed $16million to Ghana Rubber Estates, as part of a long-term commercial agreement between the two entities.
The investment will be used to bolster the company’s logistics chain and finance the development of a new pellet plant. Funding will also cover the extraction and export of woodchip biomass from Ghana Rubber Estates’ rubber tree plantation near Takoradi.
The project is expected to treble the company’s African exports in five years, with the capital set to be deployed over an eight-year period.
AfriRen is targeting to export 120,000 tonnes of woodchips per year from 2011 from its Ghana operations. The company is also finalising a feasibility study on a 2x30MW biomass-dedicated plant in Ivory Coast that will supply electricity to the grid around Abidjan.
AfriRen was established in 2010 to connect African biomass producers with the global marketplace. The company’s vision is to develop renewable energy projects across Africa that will export biomas products primarily to Europe.
“We want to be the link with European end-users looking to secure long-term biomass supply contracts or firms seeking investment in renewable energy electricity generation in the African continent,” said Sonia Medina, AfriRen’s chief operating officer.
Throgmorton, a UK-based financial advisory company worked on the structuring of AfriRen. The advisor will also assist in implementing financial and administrative processes for AfriRen’s head office operations.