Perth, Australia [RenewableEnergyWorld.com] Plantation Energy, Australia’s only manufacturer and exporter of Densified Biomass Fuel (DBF) pellets, and Denham Capital announced that Denham will make an equity investment of up to US $80 million in Plantation.
Initial proceeds will go towards funding the construction of a new manufacturing plant in Albany, Western Australia. The investment will give Denham majority ownership of the company. The existing Plantation management team will continue to manage the operations of the company.
Plantation manufactures and exports DBF pellets that are made from harvest residue from sustainably managed plantation forest. Plantation works closely with plantation owners and harvesting contractors to develop efficient and environmentally sensitive procedures for collecting and transporting the residues to the manufacturing plant.
The Albany plant, which is currently under construction, is scheduled to start production in early 2009. It expects to produce 150,000 tons within the first 12 months and has an eventual target of 250,000 tons per year.