Further press coverage of Future Fuels between the 11th and 22nd of January - Investment Adviser, Business Week , Biofuels International, Reuters, HedgeCo, Financial News, Albourne Village, Biofuels Digest, IFA Online, Environmental Expert, Euromoney Institutional Investor, Responsible Investor , Grimsby Telegraph, The China Post, Times of Oman, The Chemical Engineer Today, USA Today, Business Green, World Energy , EU Bankers, The Engineer, The Business Insider, Your Industry News, Eco-friendly Magazine, Energy Boom, Farm Brief, Environment Guru, iStock Analyst and Computing.co.uk .
Investment Adviser
Future Capital rolls out green fuel fund
Future Capital Partners has launched a renewable transport fuel fund that will allow investors to take part in the burgeoning sector.
The vehicle is a limited liability partnership company named Future Fuels. The company will build a renewable transport fuel plant in Grimsby that will produce
ethanol and high-protein animal feed.
Tim Levy, chief executive at Future, said: "Renewable transport fuels are the investment opportunity of the future.
"The global focus on renewable energy is there for all to see, yet opportunities to invest in such an obvious growth sector are currently non-existent."
Mr Levy said Future Fuels would give investors the chance to invest in one of only three renewable transport fuel production plants in the country.
"Investment in first-generation renewable transport fuels is essential to underpin investment in second and third-generation technologies - and is a crucial step towards the longterm goal of replacing oil in transport fuels," he added.
Business Week
Future Capital, Vireol to Build Renewable Transport-Fuel Plant
By Morwenna Coniam
Jan. 11 (Bloomberg) -- Future Capital Partners Ltd., an investor in alternative energy, and Vireol Plc plan to develop a plant to produce renewable transport fuel in northeast England.
The factory, to be built in Grimsby, will produce ethanol as well as a high-protein animal feed, Future Capital said today in an e-mailed statement. The company has agreements with a “major global investment bank” and a “global animal-feeds business” to purchase the plant’s output for the first 10 years, according to the statement.
Future Capital is offering investors returns of more than 30 percent a year over five to seven years. The partnership plans to raise 40 million pounds ($64.6 million) in equity and already has more than 5 million pounds, the company said. Investments are set at a minimum of 50,000 pounds.
Future Capital is targeting a trade sale or an initial public offering within five years of commissioning the plant, it said.
Biofuels International
Bioethanol project proposed for Grimsby
Link: http://www.biofuels-news.com/industry_news.php?item_id=1621
Reuters
Future Capital seeks wealth funds for 236 mln biofuels plant
* Aims to raise 236 million pounds in project finance
* Seeking 40 million pounds from private investors
* Purchasing contracts worth 1.5 billion pounds secured
By Chris Vellacott
LONDON, Jan 11 (Reuters) - A partnership set up by investment boutique Future Capital Partners aims to raise 236 million pounds ($376 million) in project finance for a biofuel plant it will construct in Grimsby, northern England.
Future Capital's chief executive Tim Levy told Reuters the bulk of the project finance will be raised through a combination of debt and equity though wealthy private investors will be tapped for 40 million pounds.
Future Capital said in a statement it expects to provide investors, who must commit at least 50,000 pounds, annual returns in excess of 30 percent over a five to seven year period. The venture has also secured purchasing contracts worth at least 1.5 billion pounds, with an unnamed global banking group agreeing to purchase all the ethanol produced over 10 years for 1 billion based on current fuel prices.
A global animal feeds business has also made a commitment to purchase the feed produced as a by product of biofuel production process worth around 500 million pounds.
Levy said the partnership has purchased the site and secured planning permission for the venture.
Biofuels company Vireol and engineering group Simon Carves are the other partners in the venture.
When construction is complete, the plant will be leased to Vireol while Future Capital plans to exit within six years through a trade sale or flotation, Levy said.
European and UK legislative commitments to increase the use of renewable energy have led to an increase in investment schemes used as project finance for new plants.
(Editing by Rupert Winchester)
($1 = 0.6269 pound)
HedgeCo
UK Hedge Fund Manager Launches Green Investment Opportunity
Link: http://www.hedgeco.net/news/01/2010/uk-hedge-fund-manager-launches-green-investment-opportunity.html
Financial News
Asset Management
Future Capital Partners, a London-based £6bn (€6.7bn) alternatives boutique, is
looking to raise £40m for a renewable transport fuel plant in North England that will generate ethanol from wheat, writes Harriet Agnew.
Future Fuels is the new venture that will own, provide finance for and construct a site in Grimsby, leasing the plant to Vireol, a renewable energy company. Investors will own a 40% stake in Vireol.
Future Capital aims to return more than 30% annualised to investors in the fund over five to seven years.
The UK Government is requiring that all transport fuel suppliers ensure 3.5% of all road vehicle fuel supplied is from renewable sources by 2010. That, coupled with 2009 European legislation that by 2020 all member countries must have 13% by volume of fuel coming from renewable sources, means demand for renewable transport fuels is expected to soar.
Tim Levy, Future Capital's chief executive, said: "Nothing is going to make a meaningful contribution to those targets apart from first-generation biofuels."
About three quarters of the plant's revenue will come from sales of the ethanol produced from wheat, and the rest from a high-protein animal feed produced in the process.
The project has signed agreements with a large investment bank and a large animal feed company, which have agreed to buy the ethanol and the feed respectively for 10 years from when production begins. Levy values these agreements at between £1.25bn and £1.5bn in revenues over the 10 years.
Future Capital wants to tap into the UK high net worth market via intermediaries and is offering a taxefficient structure as a sweetener: capital allowances worth 20% will
enable investors to offset their income for tax purposes.
Levy said Vireol would look for a flotation or a trade sale after five years.
Albourne Village
UK Hedge Fund Manager Launches Green Investment Opportunity
Link: https://village.albourne.com/news/65486?f=d
Biofuels Digest
$236 millon ethanol project proposed for UK by Vireol, Future Capital Partners
Link: http://www.biofuelsdigest.com/blog2/2010/01/12/236-millon-ethanol-project-proposed-for-uk-by-vireol-future-capital-partners/
IFA Online
Future Capital Partners offers renewable fuel deal
By Caroline Allen
Future Capital Partners (FCP), the £6 billion alternative investment boutique, has struictured a private equity deal that will allow UK investors to engage in the rapidly growing Renewable Transport Fuels (RTF) sector for the first time.
The Future Fuels partnership expects to provide investors with returns of over 30% per annum over a five to seven year period. It will be raising £40m equity, of which it has already secured over £5m (including a £3m investment from Future Capital Partners itself), and there will be a minimum investment of £50,000. A trade sale or IPO is targeted within five years of commissioning of the plant.
Future Fuels is an LLP established by FCP to build a Renewable Transport Fuel plant in Grimsby, North East England. The industrial scale plant will produce two principal products - a Renewable Transport Fuel (RTF), Ethanol, and a high protein animal feed, Distillers Dried Grains and Solids (DDGS). The production of European RTFs is expected to grow 10-fold over the next decade.
FCP is undertaking the project with Vireol, which will operate the completed plant. The Partnership will own, provide finance for and construct the site. Once completed, the Partnership will lease the plant to Vireol.
Heads of Agreement have been signed with a major global investment bank for the purchase of the first 10 years of production, while a global animal feeds business has made a £250m-£500m commitment over the same period to purchase the animal feed produced.
Tim Levy, CEO at Future Capital Partners, said while there is strong interest in renewable energy, there are few opportunities to invest in the sector. "Investment in first generation Renewable Transport Fuels is essential to underpin investment in second and third generation technologies - and is a crucial step towards the long term goal of replacing oil in transport fuels (in the UK this accounts for about 70% of our oil imports)."
The partnership will target sophisticated retail investors and high net worth individuals via the intermediary market. FCP's opportunities are sourced through UK wealth managers, high-end IFA's, accountants and private banks.
Future Capital Partners specialises in alternative investments such as renewable energy, international property, biotechnology and media and entertainment. The firm's products and investment opportunities are available to investors through financial institutions, wealth managers, IFAs and accountants.
EU and UK directives have indicated that by 2020 13% (estimated at 23 billion litres) of all the Europe's petrol fuel must come from renewable sources. Currently, just 2 billion litres (or 3.5%) of the Europe's petrol fuel comes from renewable sources, meaning that the petrol based Renewable Transport sector is set to grow more than 10-fold in the next decade.
Environmental Expert
North East biofuel venture targets GBP£236m in fresh funding
Link: http://energy.environmental-expert.com/resultEachPressRelease.aspx?cid=31242&codi=78622&lr=1&idCategory=7
Euromoney Institutional Investor
Future Capital Launches Biofuel Fund
Future Capital Partners has rolled out a renewable transport fuel fund, Financial Times reports. The renewable transport fuel vehicle, Future Fuels, will be a limited liability partnership company. The company will build a renewable transport fuel plant in Grimsby.
The partnership set up by the investment boutique is expected to offer investors with annual returns of over 30% for more than a five to seven-year period. The vehicle is targeting to raise £40 million and has already secured over £5 million in funds.
Link: http://www.emii.com/Articles/2370349/Hedge-Funds/Hedge-Funds-Articles/Future-Capital-Launches-Biofuel-Fund.aspx
Responsible Investor
Future Capital Partners, the £6bn alternative investment boutique, has launched a new UK-based private equity fund in the renewable transport fuels (RTFs) sector for the first time. It said it expected the production of European RTFs such as ethanol, to grow tenfold over the next decade. The fund is aiming to raise £40m equity, of which it has already secured over £5m, including £3m investment from Future Capital Partners itself.
Grimsby Telegraph
It's 'full steam ahead' for green fuel plant
Link: http://www.thisisgrimsby.co.uk/news/s-steam-ahead-green-fuel-plant/article-1696324-detail/article.html
The China Post
Future Capital seeking funds for US$376 mil. biofuel plant
LONDON. Reuters
A partnership set up by investment boutique Future Capital Partners aims to raise 236 million pounds (US$376 million) in project finance for a biofuel plant it will construct in Grimsby, northern England. Future Capital's chief executive Tim Levy told Reuters the bulk of the project finance will be raised through a combination of debt and equity though wealthy private investors will be tapped for 40 million pounds.
Future Capital said in a statement it expects to provide investors, who must commit at least 50,000 pounds, annual returns in excess of 30 percent over a five to seven year period.
The venture has also secured purchasing contracts worth at least 1.5 billion pounds, with an unnamed global banking group agreeing to purchase all the ethanol produced over 10 years for 1 billion based on current fuel prices.
A global animal feeds business has also made a commitment to purchase the feed produced as a by product of biofuel production process worth around 500 million pounds.
Levy said the partnership has purchased the site and secured planning permission for the venture.
Biofuels company Vireol and engineering group Simon Carves are the other partners in the venture.
When construction is complete, the plant will be leased to Vireol while Future Capital plans to exit within six years through a trade sale or flotation, Levy said.
European and UK legislative commitments to increase the use of renewable energy have led to an increase in investment schemes used as project finance for new
plants.
Times of Oman
Future Capital seeks funds
LONDON | A partnership set up by investment boutique Future Capital Partners aims to raise 236 million pounds ($376 million) in project finance for a biofuel plant it will construct in Grimsby, northern England. Future Capital's chief executive Tim Levy said the bulk of the project finance will be raised through a combination of debt and equity though wealthy private investors will be tapped for 40 million pounds. Future Capital said in a statement it expects to provide investors, who must commit at least 50,000 pounds, annual returns in excess of 30 per cent over a five to seven year period. The venture has also secured purchasing contracts worth at least 1.5 billion pounds, with an unnamed global banking group agreeing to purchase all the ethanol produced.
The Chemical Engineer Today
New biorefinery for northeast England
Link: http://www.tcetoday.com/tcetoday/NewsDetail.aspx?nid=12420&utm_source=twitterfeed&utm_medium=twitter
USA Today
North East biofuel venture targets £236m in fresh funding
Link: http://www.usatoday.com/topics/article/Places,+Geography/States,+Territories,+Provinces,+Islands/U.S.+States/Florida/07TOgCfe5ObUN/1
Business Green
North East biofuel venture targets £236m in fresh funding
Link: http://www.businessgreen.com/business-green/news/2255929/north-east-biofuel-venture-call
World Energy
Future Capital Partners Seek $376M For UK Ethanol Plant
London-based Future Capital Partners is looking to benefit from the UK’s RTFO and raise $376-million for a wheat ethanol plant in North England.
The company will lease the plant to Vireol, in which investors will own a 40% stake. Ten-year off-take agreements have been signed with a large investment bank and an animal feed company, Reuters reports.
Link: http://www.worldenergy.net/public_information/show_news.php?nid=1423
EU Bankers
British hedge fund manager launches green investment opportunity
Link: http://www.eubankers.net/page.Article.cmc?&A=1&B=1263345435&C=2010&SID=1
The Engineer
Equity firm plans bioethanol plant in North East
Link: http://www.theengineer.co.uk/equity-firm-plans-bioethanol-plant-in-north-east/1000561.article
The Business Insider
Future Capital seeks funds for $376 million biofuels plant
Link: http://www.businessinsider.com/future-capital-seeks-funds-for-376-million-biofuels-plant-2010-1
Your Industry News
Future Capital Partners launches unique green investment opportunity for UK investors
Future Capital Partners (FCP), the 6 billion alternative investment boutique, has launched a groundbreaking investment opportunity that will allow UK investors to invest in biofuels for the first time.
Future Fuels is a partnership established by FCP to fund the building of a bio-ethanol plant in the North of England. The industrial scale plant will produce two principal products - bio-ethanol and high protein animal feeds. Agreements signed with two global institutions to purchase the plants produce will ensure the projects
profitability. A major global investment bank has already agreed a 1bn purchase for the first ten years of production, while a global commodities trading firm has made a 500m commitment over the same period to purchase the animal feed produced.
The partnership expects to provide its investors returns of 30% per annum over the five to seven year period of the plants construction. It will be raising 40m equity towards the plant, and there will be a minimum investment of 50,000. The return will largely be derived from a trade sale or IPO upon the commissioning of the plant.
Tim Levy, CEO at Future Capital Partners said: Biofuels is the investment opportunity of the future. In the wake of Copenhagen, the global focus on renewable energy is there for all to see, yet opportunities to invest in such an obvious growth sector are currently non-existent. Future Fuels will provide investors with the opportunity to invest in one of only three biofuel production plants in the country.
The partnership will target sophisticated retail investors and high net worth individuals via the intermediary market. FCPs opportunities are sourced through UK wealth managers, high-end IFAs and private banks.
Future Fuels will provide an opportunity to invest in one of the next decades most lucrative growth industries. EU and UK directives* have stated that by 2020, 23 billion litres, or 13% of all the UKs transport fuel, must be made up of locally produced bio-ethanol. Currently, just 2 billion litres (or 3.5%) of the UKs fuel consists of biofuels, meaning that the biofuels industry is set to grow more than ten-fold in the next decade. In addition, BP and Shell have publicly announced that the focus of their renewable investment will be in biofuels.
FCP is undertaking the project with Vireol, which will operate the completed plant. The partnership will provide the finance for construction and the purchase of the site. Once completed, the partnership will lease the plant to Vireol.
The project that the partnership will undertake has been peer reviewed and validated by Imperial College London. As one of the leading academic research centres globally for climate change and sustainable renewable transport fuels, the independent verification provided by Imperial ensures that the project is completely environmentally friendly.
Levy concluded: While we are proud of the positive environmental and social effects the project will have, it is the investment opportunity itself that is truly exciting. It is a chance to capitalise on a non-correlated, niche investment of huge potential, while the risk controls we have placed around the partnership make it an extremely secure investment. Moreover, by securing offtake agreements for the plants produce, we have ensured the projects long term success. For the first time, Future Fuels will give UK investors the chance to take advantage of the next decades most lucrative investment.
Future Capital Partners specialises in alternative investments such as renewable energy, international property,biotechnology and media and entertainment. The firms products and investment opportunities are available to investors through financial institutions, wealth managers, IFAs and accountants.
For more Future Capital Partners press reelases go to www.yourrenewablenews.com
Ecofriendly Magazine
North East biofuel venture targets £236m in fresh funding
Link: http://www.ecofriendlymag.com/general-green-news/north-east-biofuel-venture-targets-236m-in-fresh-funding/
Energy Boom
Future Capital Partners Offers a Tantalizing Biofuel Investment Opportunity
Link: http://www.energyboom.com/biofuels/future-capital-partners-offers-tantalizing-biofuel-investment-opportunity
Farm Brief
UK wheat balance to steadily tighten
WHILE this year's UK wheat crop could potentially exceed 2009 production of 14.38 million tonnes by 2m, it is likely to to be the minimum required to fuel the additional demand for biofuel in two year's time.
A long-awaited era of a wheat ethanol industry will have a huge impact on regional and national supply and demand. It has already brought the north east a £3/tonne premium over East Anglia next season.
Feed compounders drawing feed wheat north of the Wash will have to compete for supplies - and pay accordingly. Even in 2008s record harvest, the north east, Yorkshire and Humberside between them produced 2.8m t - the ethanol plants need 2.2m t. There are over 40 feed and flour mills north of a line between Shrewsbury and Wash.
Less than 80 miles away from the second plant at Hull, Britain's currently biggest wheat processing site, Cargill Manchester, is already using 750,0001. Annually producing over 400m litres of bioethanol, 350,000 t of animal feed and 300,000 t of CO2 for the soft drinks industry, Ensus's E250m site at Wilton on Tees-side will also influence Scotland's market.
Already a wheat deficit region, Scotland is likely to become the first market trading at import parity and could see values rising by £5 to £10/t, say traders.
Apart from inevitable delays due to introducing new technology, Ensus has been hit by sympathy strikes called during last year's union disputes with the Total oil refinery and, latterly, the freeze.
We understand it is on the verge of operating only requiring regulatory clearances. Thus, it could use about 400,000 t of the 2009 wheat crop, but will need 1.1m from this year's harvest.
Similarly, Vivergo, is expected by the industry to take up to 500,000 t of 2010 production and over 1m annually thereafter.
This growing pressure for supply is likely to shrink the volume of wheat exports through the deep-water ports on the north east coast. But if sterling's value sunk even further, it would provide yet another price competitor for producers in the region.
Major shippers like Gleadell have already made key strategic decisions. While it has a grain terminal at Immingham, it is currently spending up to £5m on a new one at Great Yarmouth. It will be operational this harvest on a new outer
quay able to handle 25,000 t vessels. However, the serving road network is not ideal.
Yorkshire-based Vireol is apparently waiting in the wings to operate two 150,000 t per year bioethanol plants on Humberside using about 1m t. As Future Fuels, it remains a very embryonic venture. Investment group Future Capital Partners is trying to raise £40m for the project - providing a claimed 30% return for investors - to buy a site and build a plant, which is to be leased to Vireol. Individual investors have to stump up a minimum of £50,000 and it claims to have secured £5m plus towards the total £236m cost of the project.
Environment Guru
United Kingdom: North East biofuel venture targets £236m in fresh funding
Link: http://www.environmentguru.com/default.asp?action=view&id=209688&mod=element
iStock Analyst
UK Hedge Fund Manager Launches Green Investment Opportunity
Link: http://www.istockanalyst.com/article/viewarticle/articleid/3777289
Computing.co.uk
North East biofuel venture targets £236m in fresh funding
Proposed ethanol plant claims to have 1.5bn in supply contracts already in place
A UK-based biofuel firm backed by investment group Future Capital
Partners is aiming to raise 236m to fund the development of a major new
ethanol plant in Grimsby.
According to reports from Reuters, Future Fuels - a joint venture
between Future Capital Partners, biofuels company Vireol and
engineering group Simon Carves - has already purchased a site for the
facility and secured planning permission, and is now seeking to raise
finance to fund the project.
Future Capital Partner's chief executive Tim Levy told Reuters that
the firm hopes to raise the bulk of the 236m in project finance through
a combination of debt and equity.
Future Capital Partners said it expected investors to enjoy annual
returns in excess of 30 per cent over a five to seven year period.
The joint venture has also put in place a number of partnerships to support the proposed plant.
The company said that the it had already secured purchasing
contracts worth at least 1.5bn after an unnamed global banking group
agreed to purchase all the ethanol produced by the plant over the first
10 years of operation.
In addition, an undisclosed animal feeds business has similarly
commited to purchase the feed generated as a by-product of the biofuel
production process for 10 years. The feed will produce about a quarter
of the plant's revenues.