January 18, 2013

More green funding comes in

I think this is a good sign that various governments, banks and investors are putting in more cash and loans this month for biofuel /renewable chemical activities (see earlier post on the funding prospects for 2013).

This week, Solazyme's joint venture company, Solazyme Bunge Renewable Oils has received loan approval of around $120m from the Brazilian Development Bank (BNDES) to support the JV's first commercial-scale renewable oil production facility, which is being constructed adjacent to Bunge's Moema sugarcane mill in Sao Paulo state.

The 8-year loan will have an average interest rate of 4%/year. The facility is scheduled to start operation in the fourth quarter of 2013. According to Solazyme, it will initially target 100,000 tonnes/year of renewable oil production (made from algae that eats the sugar and poops out the oil), which will service the renewable chemical and fuel industries within the Brazilian marketplace.

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