Addax Bioenergy secures EUR-258m funding for biomass power project in Sierra Leone

(ADPnews) - Jun 20, 2011 - Addax Bioenergy, a unit of Swiss energy group Addax and Oryx Group Ltd (AOG), last week said it had arranged EUR 258 million (USD 367.2m) in financing with development institutions for an integrated biomass power project in Sierra Leone.

The project envisages development of a greenfield sugarcane plantation, and construction of an ethanol refinery and a biomass-fired power plant. The sugarcane produced at the plantation will be converted into bioethanol for distribution in the European and domestic markets. The power plant will supply electricity for the refinery and will deliver some 20% of Sierra Leone's national grid, according to Addax.

Under the agreement, the African Development Bank, the Emerging Africa Infrastructure Fund, the Netherlands Development Finance Company (FMO), the German Development Finance Institution, the South African Industrial Development Corp, the Belgian Development Bank, and IFC Debt Pool managed by Cordiant Capital, will provide an EUR-133-million loan. The Swedish Development Fund and the FMO will provide the rest of the agreed amount through equity financing.

Construction of the ethanol refinery and power plant will begin later this year. Start of operation is slated for 2013.

The project is expected to create permanent 2,000 jobs.

(EUR 1 = USD 1.423)

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