Release
Africa Renewables is first UK biomass company to harness energy potential of Africa and will treble SIFCA’s African biomass exports in the next five years.
Africa Renewables Ltd (“AfriRen”), the newly-formed biomass producer and exporter, has entered into a long-term commercial agreement with GREL, a subsidiary of SIFCA, the leading African agribusiness group which employs 21,000 people and has a turnover of €600 million.
AfriRen’s partnership is the first between a London-based biomass producer and exporter and an African agro-industrial company and will see $16 million worth of initial investment. The deal positions AfriRen as a platform to access European biomass buyers and cements London’s place as a world centre for renewable energy start-ups.
AfriRen have also partnered with Throgmorton UK Ltd (“Throgmorton”), the financial and administrative outsourcing firm, who helped structure the innovative new company in the UK. Throgmorton will assist in implementing robust financial and administrative processes for AfriRen’s UK head office operations from day one.
Almost all biomass currently imported into the EU comes from the Americas so this partnership breaks new ground in connecting successful African businesses to 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.
High-quality traceable biomass is now a must for the major power companies as they look to meet EU requirements to cut greenhouse gas emissions by 2020. AfriRen, who aim to become the biggest biomass producer in Africa, expects to export 120,000 tonnes of woodchips per year from 2011 onwards from its operations in Ghana alone. The woodchips will meet the European standards for biomass quality specifications and sustainability.
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. Investment in a complete Ghanaian logistics chain and in a new pellet plant will total US $16 million over 8 years. The project will look to treble the company’s African exports in five years.
The company was founded by Managing Director and senior energy trader Jean-François Guillon in April 2010. Jean-Francois has over 25 years of experience in commodities and energy trading.
Sonia Medina, Partner and Chief Operating Officer, has a strong background in the International and American greenhouse gas mitigation market. Sonia worked for EcoSecurities, one of the largest carbon offset project developers in the world and at the United Nations (UN).
The firm has appointed Throgmorton to provide financial consultancy, accounting, tax, payroll and company secretarial services to the new venture.
Sonia Medina, COO for AfriRen, commented: “We are extremely pleased to announce the launch of our biomass production and exportation business. We are passionate about the development in Africa and are committed to building a company that helps Africa realise its energy generation potential from renewable sources. 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.”
Andrew Rubio, Chief Executive of Throgmorton, commented: “We are delighted to be working with AfriRen. This is an exciting engagement with a huge amount of potential for growth and we are in place to assist in the company’s structuring in order that Sonia and Jean-François can concentrate on the day-to-day running of the business. We are also in place to source external advisers to help AfriRen expand.”
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