Electrawinds helps set up biodiesel partnership

Oct 14, 2013 - Luxembourg-based Electrawinds SE (ETR:EWI) on Monday announced it had taken part in the formation of a joint venture to source, produce and market second-generation biodiesel based on waste products.

The new firm, to be known as AD Biodiesel SAS, will be controlled by France’s Sofiproteol Group through its Diester Industrie unit, which has taken a 60% stake. Electrawinds itself has acquired a 20% interest, while the rest of the shares are shared equally by the Mindest Group and Akiolis Group SAS, part of Belgium’s Tessenderlo Chemie NV (EBR:TESB).

Electrawinds noted that the JV begins operations today and is projected to add a positive and stable earnings before interest, tax, depreciation and amortisation (EBITDA) flow going forward. The main feedstocks for AD Biodiesel SAS will include animal fats and used cooking oils.

In late August, Electrawinds said its solid biomass activities had performed well during the first half, experiencing a 19% increase in EBITDA. However, the liquid biomass operations incurred substantial start-up losses in the second-generation biodiesel activities.

At that time, the company mentioned it planned to form a strategic partnership with important sector players in the second-generation biodiesel domain. It went on to say that the new approach would result in lower, but more stable future cash flows than previously expected.

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