Viridas waiting for verdict on biomass

The Leeds-based group, which plans to develop a commercial biofuel operation, said it needs regulatory support for biomass subsidies before it can press the button on establishing plantations in Brazil.

Viridas is aiming to commercially produce oil from the jatropha plant, which is an inedible but highly-calorific plant which grows in Brazil.

The company yesterday said it fell to a 565,676 loss in 2009, compared with 622,117 a year earlier.

It raised 850,000 in November, and had cash of 657,000 at the end of the year.

Executive chairman Stanley Wootliff said whilethe company has established an office in Brazil, it cannot create a jatropha trial plantation until demand from UK power generators is firm.

"To a degree we are sitting on our hands," he said. "We have things lined up but they are not going to decide unless the biomass power generators go ahead."

North Yorkshire power station operator Drax recently said it needs "regulatory certainty" if it is to build three standalone biomass plants in the Yorkshire and Humber region.

Viridas ultimately hopes to establish a plantation producing 60,000 tonnes of crude jatropha oil and 240,000 tonnes of biomass annually.

The underwear-turned-biofuel firm said it is in talks with power stations over building a crushing plant near a UK port, which would treat the imported jatropha seeds.