| |
UK comfortable with biofuels - Gregor Paterson-Jones, CEO, Sterling Waterford
In an interview on 702 @ 18:15 on Tuesday, 9 May 2006
[miningmx.com] -- THE decision to list Ethanol Africa on London's Alternative Investment Market was borne of the capital's greater comfort with biofuels as an investment case.
This was the view of Gregor Paterson-Jones, CEO of Sterling Waterford, a carbon credits company that owns 50% of the corn-to-ethanol enterprise. The balance of the firm is owned by Ecofields, which represents a group of South African corn (maize) farmers.
"There's a lot more money and momentum internationally with successful listings in biofuels," said Paterson-Jones. Ethanol Africa, which plans to operate in South Africa's Free State province, wants to raise £100m (R1.2bn). The listing is planned for November.
Commenting on progress with the building of the first plant, Paterson-Jones said the first soil "had been turned". However, the company was still waiting for delivery of equipment. Paterson-Jones
was speaking on The World at Six, a radio programme broadcast on 702.
According to its website, Ethanol Africa intends to build the first plant at a cost of about R630m, and wants to build seven more.
Paterson-Jones said funds to roll out the company's strategy would be raised partly through debt against future production.
"As production comes on line, it will generate a return on that investment. We can then bring in debt against production," he said.
Bioethanol can be blended into petrol for a cleaner-burning fuel. A task team is investigating the potential for large-scale use of bioethanol and biodiesel in South Africa, with findings expected later this year, Business Report said earlier this week.
"First production is expected late next year, with capacity estimated at 473,000 litres of bioethanol and 63,000 litres of biodiesel," Business Report said.
| |
