Kelda Group plc has announces that it has, through its renewable energy subsidiary First Renewables Limited, invested a total of £6 million in the Fibrowatt Group.
In return, the Company will have an initial equity stake of 31% in FibroHoldings Ltd, the parent company of Fibrowatt, together with an option to acquire additional shares under certain future conditions.
Fibrowatt is a company engaged in the production of renewable energy from the combustion of poultry litter.
Fibrowatt and First Renewables, together with Fibro Holdings' other shareholder, Falck of Italy, see many opportunities for co-operation and exchange of expertise, particularly in the large US marketplace and intend to build a major force in the world-wide biomass power market. Kelda has agreed to invest a further £2.5 million to finance development in the US. The US development company will be 51% owned by First Renewables.
Fibrowatt will use the investments to develop new power station projects, based upon its unique technology, in Europe and the USA.
Fibrowatt is the pioneer in the production of renewable electricity from the combustion of poultry litter and has built the world's first three power stations using this fuel. The plant at Thetford in Norfolk generates 38.5MW and is the largest biomass renewable energy power station in Europe.
First Renewables is the vehicle for Kelda Group plc's expansion of its environmental activities into renewable energy and is in the process of completing the construction of the 10MW Arbre Project, the world's first coppiced willow gasification plant.
