Buchanan Biomass Plant

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Buchanan Renewables Power Group, registered in the Netherlands and majority owned by two US citizens, was planning the development of the 36MW biomass plant. The company was 30% owned by Vattenfall which aquired the equity in 2010. The equity investment of $142.2 million was covered by a MIGA guarantee. Vattenfall sold its share back to Buchanan in 2012. The plant was to be fueled with locally sourced biomass from unproductive rubber tries via Buchanan Renewables Fuel. The project was localized near Kakata, around 56 kilometer from Monrovia. The project received a permit from the Liberian government to construct the plant in 2009 but was placed under review in May 2012. At that time, the project had already leased land, completed an environmental study and secured financing for the plant. The company was under further negotiations with the government in May 2012. Buchanan Renewables Fuel, the subsidiary responsible for the biomass production received a $90 million loan from OPIC in March 2011 to expand production. Legal advisors were Dewey & LeBoeuf for OPIC, and Hogan & Hartson for the government of Liberia. Total value was reported at $$170 million, of which $120 million was debt. The equity share was $50 million. The debt/equity ratio was 70/30. The project reached financial closure in March 2009. http://www.buchananrenewables.com/power.php http://www.miga.org/projects/index.cfm?pid=855 http://www.vattenfall.com/en/file/Biomass-ENG.pdf_16470113.pdf http://theliberiantimes.com/?p=8951 http://www.opic.gov/news/press-releases/2009/pr031011c http://www.ijonline.com/Transaction/18366

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