Biocoal maker 4Energy sees surge in sales
The firm, which makes electricity and biocoal by burning waste wood, is planning a major international expansion and has opened an office in Brazil, is building a site in Ham, Belgium, and is looking at sites in Germany and the UK.
Turnover we should reach it multiplied by 10 within three to four years, Chief Executive Yves Crits told Reuters during an interview at its main power plant in Amel, on the border between Germany and Belgium.
4Energy floated in 2008 at just over 6 euros and peaked later that year at just over 7 euros before falling in the recession. While trading around 5 euros for most of this year, it should post further gains on the expansion plan.
What we have done is to anticipate the roll out of the technology by already introducing the permit file in Ham, the permit file in Germany, by already creating the office in Brazil, by having negotiation with groups in other parts of the world, he said.
The company began life in 2005 producing energy for the wood industry in the forests around Amel, but its role as a biocoal pioneer resulted in it being approached to set up plants in countries as far afield as Brazil and New Zealand.
We were contacted by people in New Zealand, they contact us. As the first mover we have enjoyed high visibility and we want to keep this first mover advantage, said Crits.
Earnings before interest, tax, depreciation and amortization EBITDA tumbled to 2.8 million euros US $3.78 million in 2009 compared with 4.3 million in the previous year, hit by falling energy prices.
However, Crits predicted that EBITDA would rise by about 10 percent in the second half of 2010 as prices recovered.
The Amel plant combines an electricity generator powered by waste wood, and a unit which super heats the wood to create biocoal, which the company then sells to be burned by power stations.
However, many of the new sites could focus on making biocoal, with a waste wood generator used mainly to give the plant electricity.
You cut the tree to make the biocoal, you replant it, and basically you dont increase the volume of CO2, thats the reason why the biocoal is CO2 neutral, said Crits.
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