Renova starts expansion drive
Article Date: Aug 31 2005Renova Energy has started to expand ethanol capacity from five million gallons to 12 million gallons per year at Torrington, Wyoming and targets 70 million gallons capacity by 2010.
AIM-quoted Renova, which distributes and markets ethanol in the USA's Rocky Mountain states, also hopes to increase its total sales of this alcohol by-product of corn and sugar, for blending with petrol in motor vehicles, to 100 million gallons in five years. The present Torrington expansion is a £7.7 million fixed-price turnkey project with a completion date set for mid-June next year and guaranteed by the contractors.
Using ethanol is seen in the USA as a means of mitigating the effect of rising oil prices on road users, reducing the environmental damage caused by petrol and supplementing the incomes of Republican-voting midwestern farmers. Blending it with petrol attracts sales tax relief for garages.
Chris Thomas, Renova's executive chairman, says expanding Torrington as planned will bring economies of scale and 'significantly enhanced operating efficiency, which will transform the financial performance of the group'.
Recommended here on 1 August at 90p, Renova shares are up 18.5p today at 136.5p, a gain of 50 per cent. Hold on.
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