To support its first biomass energy project in Africa, Takoradi Renewable Energy Limited, a subsidiary of biomass producer and trader Africa Renewables (“AfriRen”), has received a credit facility of US$5million from Standard Chartered Bank in Ghana. The US$5million is to be split between two components. A capital expenditure loan of US$3million will be used to develop the land near the port of Takoradi into a factory workshop and a storage space for woodchips. The remaining US$2million will be spent on operational expenses. Sonia Medina, Chief Operating Officer at AfriRen said, “Standard Chartered has the credibility, reach and reputation we want. They are the leading bank in West Africa. Most importantly, they have been extremely enthusiastic about our project and future plans from day-one. The credit facility gives us a firm foundation while allowing us the freedom to expand quickly elsewhere in West Africa.” It was also reported that US$8million will be invested by AfriRen in its biomass extraction chain in Ghana.

To benefit from the increase in Europe’s biomass demand, it plans to seek funding of up to US$30million to facilitate the replication of the project across the West African region. AfriRen harvests redundant rubber trees that are cut, and processes them into woodchips.

Managing Director, Organization and Client Coverage, Standard Chartered Ghana, Ahmad Pirzada said, “AfriRen approached us with a robust business plan and an enthusiasm for sustainability and growth. This is a perfect fit with our sustainable finance approach and the opportunities presented by renewable energy. These will certainly enable us to continue to build a sustainable business, simultaneously creating value for our shareholders, supporting our customers and contributing to the communities in which we live and work.”

In reference to above, Founder and Managing Director of Africa Renewables Ltd., Mr. Jean-Francois Guillon is slated to deliver a session entitled “From Trees to Woodchips: Biomass Opportunities for Rubber Farms” at RubberPlant Africa in Accra, to be held from 04-05 September. To be a part of this conference, Register here. Forward other enquiries to Ms. Hafizah at hafizah@cmtsp.com.sg

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