Renewable fuels reward investors

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Investec diving into renewables: One significant biofuels investor is the Australian office of Investec Bank, which is building a renewable energy investment business to add to its private equity, real estate and corporate advisory operations.

US ethanol deal: This month Investec added ethanol to its portfolio with a $US100 million ($A134 million) deal to gain access to 160 million gallons of ethanol production in the US, using special-purpose company Global Ethanol Holdings. GEH has taken a 60 per cent stake in lowa-based co-operative Midwest Grain Producers, which has an operational plant producing 100 million gallons (378 million litres) of ethanol with a 60-million-gallon plant under production in nearby Michigan.

Two more in the pipeline: Investec’s executive chairman in Australia, Geoff Levy, says the group has two other ethanol deals close to completion, one of which is in the US.

The Age, 24/4/2006, p. 2

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