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Africa Renewables enters biomass agreement with SIFCA

Africa Renewables Ltd (AfriRen), a UK biomass producer and exporter, has entered into a long-term agreement with GREL, a subsidiary of African agribusiness group SIFCA.

The biomass partnership could see US$16 million worth of initial investment. The deal positions AfriRen as a platform to access European biomass buyers, the company says.

Almost all biomass currently imported into the EU comes from the Americas, AfriRen says, but with this partnership African biomass businesses will be put in touch with European energy firms.

AfriRen will develop “renewable energy projects in Africa in line with latest technology, economic trends and utmost respect for the environment and local communities.”

The biomass company expects to export 120,000 tonnes of woodchips per year from 2011 onwards from its operations in Ghana alone.

For this first project AfriRen has finalised an 8-year agreement with SIFCA-subsidiary Ghana Rubber Estates Ltd (GREL) covering the extraction and export of woodchip biomass from their rubber tree plantation near Takoradi.

AfriRen have also partnered with Throgmorton UK Ltd, a financial and administrative outsourcing firm. Throgmorton will assist in implementing financial and administrative processes for AfriRens UK head office operations.

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