Viridas settles deal with generator

The Leeds-based group plans to develop a commercial biofuel operation producing oil and biomass from the jatropha plant, an inedible but highly-calorific plant which grows in Brazil.

The underwear-turned-biofuel firm expects the partnership deal to lead to the signing of a supply deal with the power firm.

Chairman Stanley Wootliff said: "The future signing of a biomass 'off take' agreement with an important major electricity generator for the annual purchase of 240,000 tonnes of biomass, 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 10 years.

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

Viridas 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.

Viridas expects to start commercial production in 2013.

The group first hopes to raise around 5m to fund a 250-hectare (1 sq mile) base jatropha plantation in Brazil.

Viridas intends the plantation will provide seeds for the commercial development of a much larger 30,000 hectare (120 sq mile) plantation.

The funds will go to establishing the base plantation, training 200 staff, buying 120 tractors, obtaining 26 million jatropha plants, plus getting its venture licensed and approved. It plans to use the 250-hectare base plantation to grow the plants for the larger site.

Biomass will be created by crushing jatropha seeds for oil. The oil will be used for the production of biodiesel for road and air transport.

In recent years it has completely shifted its focus to concentrate on jatropha, changing its name from Caldwell Investments to Viridas. It was previously a collection of businesses ranging from garden furniture to a baby buggy parasols and German underwear.