Vattenfall, Swedfund buy 30% in Liberian Buchanan Renewables

(ADPnews) - Jun 17, 2010 - Swedish utility group Vattenfall and state-owned venture capital fund Swedfund have jointly taken over a 30% interest in Liberian biomass supplier Buchanan Renewables Fuel.

Vattenfall, which already has a sourcing agreement with Buchanan Renewables, takes now a 20% share, with Swedfund holding the other 10%.

The transaction is expected to expand the company's operations and ensure a long-term supply of biomass made from old, non-productive rubber trees, which stop producing latex after 25-30 years. Buchanan Renewables then removes these trees from the plantation, pays the farmer for the trees and ensures that new trees are being planted. In this way trees that had previously been burned as waste now become valuable biomass that meets high-sustainability requirements, Vattenfall noted.

Buchanan Renewables is anticipated to deliver up to 2 million tonnes of biomass per year to Vattenfall, said Goran Lundgren, vice president, responsible for the company's biomass programme.

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