USD 90m loan for Swedish-sponsored biomass in Liberia
A public US finance institution has provided a USD 90 million loan to a biomass project in Liberia, sponsored by the Swedish aid-financed investment agency Swedfund and the energy company Vattenfall.
The loan will allow expansion of a Liberian biomass project which turns rubber trees into wood chips for energy production. Buchanan Renewables Fuel, Inc., which runs the project, expects to expand wood chip production in Liberia from 100,000 to more than 2 million metric tonnes annually by 2017.
The wood chips will be exported to Europe for use as biofuel in power plants.
The loan is provided by the Overseas Private Investment Corporation, a US government development finance institution.
In June 2010, Vattenfall AB acquired a 20 per cent position, and Swedfund a 10 per cent position in Buchanan Renewables Fuel. Pamoja Capital, a social investment company is the majority owner of the company