Bloomberg News

Future Capital Fundraising for $250 Million Bioethanol Refinery

June 07, 2013

Future Capital Partners Ltd. plans to raise 7 million pounds ($11 million) through a sale of equities to fund the next stage of development of a 160 million-pound wheat-to-bioethanol refinery in Grimsby, northern England.

The minimum investment in Future Fuels LLP, established to develop, build and operate the plant alongside Vireol Ltd., is 50,000 pounds, London-based Future Capital said today in an e-mailed statement. The company anticipates an internal rate of return after tax of about 40 percent for investors, it said.

The fundraising follows Future Capital’s purchase of a U.S. bioethanol plant in March that it plans to sell to Future Fuels so the developer can bring equipment to Grimsby and cut costs by about 50 million pounds. Proceeds will pay for integration of new assets into the project, furthering site development and maintaining the U.S. plant’s assets, according to the statement.

“The market for bioethanol is set to triple in the next seven years as U.K. government and European Union regulation focus on renewable transport fuels at the heart of their carbon reduction strategy,” Piers Denne, director of sales at Future Capital, said in the statement.

The U.K. plans to get 10 percent of the energy used in road transportation from renewables such as bioethanol and biodiesel by 2020. Vehicles contribute as much as 21 percent to its total greenhouse gas emissions, according to the government. The Grimsby plant will make about 200 million liters (53 million gallons) a year, enough to deliver 15 percent to 20 percent of U.K. transport fuel requirements by 2016, Future Capital said.

To contact the reporter on this story: Louise Downing in London at ldowning4@bloomberg.net

To contact the editor responsible for this story: Reed Landberg at landberg@bloomberg.net


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