U.S. LA Investment Capital To Invest $10 Mln in Bioethanol Plant in Moldova

CHISINAU (Moldova), December 21 (SeeNews) – U.S.-based investment company LA Investment Capital said it will invest $10 million (7.0 million euro) in the construction of a bioethanol plant in northern Moldova.

LA Investment Capital, which will operate in Moldova through its joint venture BioCombustibil SRL, will build highly efficient small-scale biofuel production unit located near feedstocks and optimised to match local markets, the fund said in a statement on Saturday, adding that it plans to complete the investment by March next year.

The plant will have installed capacity of 10 million gallons, equuvalent to around 37.8 million litres of biethanol per year, it said.

LA Investment Capital added that the project is also sponsored by the Moldovan corn processor Seminte Nord. Last year, Seminte Nord officials told SeeNews they were looking for investors in a $40 million bioethanol plant.

Seminte Nord, established in 1985, is one of the leading grain processors in Moldova. Its capacity exceeds 10,000 tonnes of corn per year. The company has hired about 80 farmers to grow over 60,000 tonnes of corn annually.

"The project will take advantage of the largest biofuel production technology while leveraging existing infrastructure, and strategic partnerships with farmers and end users to produce low ethanol, animal feed, and CO2 for both local and EU markets," LA Investment Capital said.

Bioethanol, used as a petrol substitute, is usually produced by fermenting fuel or energy crops, which are renewable sources, unlike finite oil and gas. The feedstocks for ethanol production vary by region, including sugar cane in Brazil, grain and corn in North America, and grain and sugar beet in France. Bioethanol causes less air pollution and less greenhouse gas emissions than fossil fuels.

($=0.6983 euro)

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