Future Capital Buys U.S. Bio-Ethanol Plant for $220 MillionLouise Downing
Future Capital Partners Ltd., a London-based investment company, bought U.S. bio-ethanol maker Appomattox Bio Energy LLC for $220 million and will use some of its equipment to start a plant in the U.K.
The company will sell Appomattox’s land, plant and machinery to the Future Fuels Partnership that it set up to build a bio-ethanol refinery in Grimsby, northern England, it said today in an e-mailed statement.
The Grimsby project, which has the potential to deliver as much as 15 to 20 percent of Britain’s bio-ethanol requirements by 2016, was originally to be built from scratch, according to the statement. The acquisition will lower construction costs by about 50 million pounds ($76 million), it said.
“This is a really exciting development for Future Fuels, allowing the project to re-open to new investors seeking significant return potential as well as affording substantial downside risk protection,” Jonathan Turney, associate director for renewable energy at Future Capital, said in the statement.
The Grimsby plant will be operated by Vireol Ltd, according to the statement. Bio-ethanol can be added to petrol to power vehicles, thereby lowering their emissions.