Last checked at 26 Jul 2010 07:00
Viridas plc
("Viridas")
STRATEGIC DEVELOPMENT AND PARTNERSHIP AGREEMENT
Viridas is pleased to announce that it has entered into a Strategic Development and Partnership agreement with a leading UK energy generator to supply them with 240,000 tonnes per annum of sustainable bio-mass for electricity generation. It is anticipated that this partnership will lead to the signing of a sustainable bio-mass "off take" agreement between the parties.
The bio-mass will come from the seed cake produced by Viridas by crushing, in the UK, the seeds of the dedicated energy crop jatropha curcas to produce both bio-mass, for the electricity generating industry, and bio-oil, for the production of bio-diesel and bio-kerosene for the Road and Air transport industries.
Viridas announced last year it had signed an "off take" agreement with INEOS, the worlds third largest chemical company and the largest independent distiller of petroleum products in Europe, for the purchase of Viridas' programmed annual production of 450,000 barrels of bio-oil to be produced concurrent with the bio-mass.
Viridas is implementing an owner/operator plantation model which has proven successful for other listed plantation companies. By adopting this model and locating its project in Brazil, Viridas expect to bring commercial production on stream in 2013.
Stanley Wootliff, Chairman of Viridas, commented: The future signing of a bio-mass "off take" agreement with an important major electricity generator for the annual purchase of 240,000 tonnes of bio-mass, coupled with the bio-oil agreement already in place with INEOS, will give Viridas gross revenue potential in the region of US$1Billion over the next ten years. Having two very credible development partners, together with US$1Billion of contracted forward sales, will enable us to crystallize our development programme and establish Viridas as a leading producer of truly sustainable, renewable dedicated bio-fuels.
For more information please contact:
Viridas plc:
Stanley Wootliff, Executive Chairman +44 (0) 11 325 0632
Nominated Adviser:
Arbuthnot Securities
Antonio Bossi/Paul Gillam +44 (0) 20 7012 2000