Dovre Group Plc, a Finnish project management services provider, bought a minority stake in Sararasa Biomass Pte. Ltd. to expand into renewable energy.
Dovre will invest about 1.4 million euros ($1.9 million) in Sararasa’s first project, an Indonesian plant making pellets from wood waste materials, the Espoo-based company said today in a statement. Stahl Capital Ltd., a financial investor, also owns the plant.
Sararasa, based in Singapore, makes pellets made from waste such as sawdust or shavings for use in power plants in Asia. The waste material is compressed under high pressure to form pellets that are a “virtually carbon dioxide neutral” source of energy, according to the company’s website.
“Our intention is to work together with Sararasa on other biomass-to-energy projects in the future,” Janne Mielck, chief executive of Dovre, said in the statement. The company, which had net sales of 73 million euros last year, is studying developing, financing and managing renewable energy projects with local developers, according to the statement.
Terms of the transaction weren’t disclosed.