California-based Pure Biofuels Corp. (OTCBB: PBOF.OB) has closed a $30 million round of funding, consisting of a $10 million convertible note and a $20 million secured credit facility.
Pure Biofuels, which aspires to leadership in Latin America, will use the proceeds to complete construction of a 52.5 million gallon per year production facility at the Port of Callao in Lima, Peru.
The company also plans to complete the acquisition of Interpacific Oil and the expansion of that facility from its current 7 million gallons per year to 10 million gallons per year. The annual capacity for the combined operation is expected to exceed 62 million gallons per year by mid 2008, making Pure Biofuels one of the largest biodiesel producers in South America.
The funds will also be used to finance feasibility studies that are underway to support its expansion into Argentina as well as a vertical integration strategy where the company will produce 100% of its own feedstock from plantations in Peru. The feedstock studies are focusing on the development of palm, jatropha, and canola plantations. Pure has secured 60,000 hectares for plantation development in central Peru and has plans for additional expansion.
Biofuels’ flagship project, the Callao Port biodiesel refinery near Lima, Peru, is scheduled to commence production during the first quarter of 2008. The Callao Port refinery will process biodiesel from crude palm oil feedstock. Pure Biofuels has secured memorandums of understanding with local fuel distributors for all of Callao Port’s annual biodiesel production. The company believes Peru’s economic growth and expansion, which includes a more than doubling of foreign direct investment in the country to $3.5 billion in 2006, and over 8.0% of GDP growth in 2006, adds to Peru’s promise as an attractive geography for alternative fuel production and development.
Loading...