Viridas in biomass deal

The Leeds-based group, which is developing a commercial biofuel operation, said the strategic development and partnership agreement to supply the bio-mass for electricity generation.

The bio-mass will come from the seed cake produced by Viridas by crushing, in the UK, the seeds of dedicated energy crop jatropha curcas to produce both bio-mass, for the electricity generating industry, and bio-oil, for the production of bio-diesel and bio-kerosene for the road and air transport industries.

Viridas said it was expected the partnership will lead to a sustainable bio-mass "off take" agreement between the parties.

Stanley Wootliff, chairman of Viridas, said: "The future signing of a bio-mass "off take" agreement with an important major electricity generator for the annual purchase of 240,000 tonnes of bio-mass, coupled with the bio-oil agreement already in place with INEOS, will give Viridas gross revenue potential in the region of $1bn over the next ten years.

"Having two very credible development partners, together with $1bn of contracted forward sales, will enable us to crystallize our development programme and establish Viridas as a leading producer of truly sustainable, renewable dedicated bio-fuels."

Viridas also has a 10-year supply and development agreement in place with chemical giant Ineos Enterprises. The deal, for up to 60,000 tonnes of oil annually, will be triggered once Viridas hits commercial production levels and gives the group a clear route to supply jatropha oil to the market.