NTR plc and Sir Richard Branson’s Virgin Group announced last week (16th January) the formation of a Joint Venture company VBV LLC (Virgin Bioverda) to exploit opportunities in the biofuels sector with particular focus on US based Ethanol.

Bioverda the bio-energy division of NTR plc, along with Virgin Fuels, through its Joint Venture VBV LLC, also announced an investment in two 100 million gallon corn to ethanol plants in Indiana (Indiana Bioenergy LLC) and Tennessee (Ethanol Grain Processors LLC). The total capital investment in these projects will be in the region of $336 million (€260 million). Construction of both plants is to be carried out by Fagen Inc., the specialist US construction company and is expected to be completed in the first half of 2008. VBV LLC has already identified a number of additional projects for development in 2007/08. The Virgin Bioverda partnership intends to look for additional biofuel opportunities in North America and Europe. 

Jim Barry, Chief Executive of NTR plc said, “The Bioverda and Virgin Fuels Joint Venture demonstrates both companies’ commitment to environmental sustainability and our joint belief that biofuels will play a significant role in meeting the increasing demand for energy from renewable resources. The tremendous potential for this partnership should be seen in the context of both organisations’ commitment to the commercial development of renewable energy and to the recent announcement by Sir Richard Branson, on behalf of Virgin, to invest up to $3 billion over the next 10 years to combat global warming and NTR’s recently announced corporate strategy to invest up to €3 billion in renewable energy over the next 5 years. NTR are delighted to take this step with Virgin and believe that the Virgin Bioverda partnership has excellent prospects both in the US and beyond”.

Sir Richard Branson, Founder of Virgin Group added, “We are delighted to be working with Bioverda. This is our second venture in the biofuel market in the US since Virgin Fuels formed under the management of Shai Weiss. The above investments now bring Virgin’s total financial commitment to the renewable energy sector to $150 million in the last twelve months.”