Future Capital Buys Ethanol Plant - Kirayaka International.

Online, April 24, 2013 (Newswire.com) - Kirayaka International allegedly announced in a recent meeting for investors that Future Capital Partners is set to buy Appomattox Bio Energy LLC valued at $220 million.

The UK private equity firm aims to use the assets to develop its planned £210m biofuel plant in Grimsby, England. Kirayaka International supposedly noted that Future Capital Partners unit called Future Fuels Partnership hope to commence construction in Grimsby before the end of the year.

The European Union has set out guidelines that mandate that 15% of Britain's energy must come from renewable sources by 2014. In order to meet this commitment, the UK is keen to have 5% of fuel for vehicles made from renewable sources, such as biofuel.

Kirayaka International reportedly reiterated that a spokesperson had stated that although the sale price would not be disclosed, the US plant was valued at $220 million. The assets would be transferred to Future Fuels Partnership and around 75% of the machinery could be shipped to Grimsby from Virginia to be used in the new UK plant.

This project is essential if the UK is serious about meeting its long-term renewable energy targets according to Associate Director for Renewable Energy at Future Capital Partners, Jonathan Turney. A lot of projects in Europe have fallen by the wayside, but the mandated targets remain in place. It's a significant chunk of the U.K.'s requirement.

Kirayaka International are understood to have remarked that the U.K. had a production capacity of 475 million liters of bio-ethanol in 2011. Future Capital Partners claim that there will be capacity to produce 220 million liters at the Grimsby plant once it becomes fully functional.