TOPIC 'Bioenergy' on Nov 26, 2008 (CET)
Brazil Poised to Build Sugarcane and Ethanol Manufacturing Facility
Vital Renewable Energy Company (VREC) has received an infusion of capital from Leaf Clean Energy Company (LCEC). LCEC was established in the Cayman Islands in May 2007, and it invests in clean fuels and renewable energy alternatives. It issued $50 million in financing with the preferred stock option for Vital Renewable. VREC, a relatively young Brazilian company, will construct facilities in Brazil to harvest sugarcane for ethanol production.
Leaf Clean Energy Company was not the only financier of the project, however, as a consortium of investors were sought to fund the ethanol and electricity-generating projects in Brazil. Vision Brazil Investments had an active role in gathering the private investors, which include those from Europe, the Middle East, and the United States. Vision Brazil Investments acts in an advisory capacity and to assist private equity ventures from sources outside the country that are interested in investing in Brazil. PCG Clean Energy & Technology Fund and Petercam Asset Management are also ready for Brazil to take the next steps to progress in the “green” marketplace.
VREC has begun construction in Sao Paulo, Brazil on the first unit. Grupo Farias is an experienced sugarcane and ethanol firm that is established in Brazil and has 10.5 million plus tons of crushing capacity for the industry. It has taken much analysis and statistical review to gather these corporate players to invest in this initiative.
Paladin Capital Group led the way in assembling all members of the financing partnership. VREC has many plans to invest in a number of projects in Brazil, including possibly purchasing existing ethanol plants and existing ethanol infrastructure. Paladin Managing Partner and Founder, Michael Steed, has stated that he believes Brazil can be a world leader in producing ethanol and that is only the beginning of the renewable energy industry opportunities in the country. He thinks Brazil is well positioned to be one of the fastest growing renewable energy sources on the globe.
Sherry Irvin
on behalf of the
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