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Mr. Jan Reinas joins the Norwegian-based biofuel company BioFuel AS as Chairman of the Board. Reinas was Chairman of Hydro ASA from 2004 to 2007, CEO of the paper group Norske Skog from 1994 to the end of 2003, and has also worked as CEO of Scandinavian Airlines.
Mr. Reinas joins board members Finn Byberg, Arne Helvig, Stian Vemmestad and Odd-Even Bustnes. Current main shareholders of the company include NorFuel AS (financed through SakorninVest II, Rogaland Vekst, Radiance and Hafslund Venture), the company's founders and a number of private investors.
"We are proud to have Jan Reinas join our team, said BioFuel AS Chief Executive Officer Steinar Kolnes. "His long-standing international experience and industrial competence gained from world-leading companies will be of great importance to us, especially regarding the phase we are currently entering."
BioFuel AS is an independent Norwegian company focusing on upstream biofuel production from the cost-efficient jatropha plant. Because the plant grows well in semi-arid areas and can flourish on degraded lands, it does not conflict with food production, does not contribute to deforestation, and is a major positive economic factor for developing economies such as Africa. Jatropha has been recommended by the Norwegian consultancy Econ as an excellent alternative biofuel feedstock due to its premium properties compared to other oil crops such as palm and soy. According to Goldman Sachs, jatropha crude oil is expected to trade higher than both palm and soy.
"BioFuel AS is positioned in a highly attractive segment of the biofuel market with jatropha," said Jan Reinas. "I'm looking forward to actively contributing to the ongoing development of the company."
BioFuel AS is currently working with First Securities to raise NOK 35 million (US$6.5 million) in a private placement to contribute to the further corporate expansion. The company expects to produce its first commercial oil in Q4 2008, and within eight years be producing 25,000 barrels of jatropha crude oil per day.
The ongoing private placement is set to finance the cultivation of the first 20,000 hectares of arable land in Ghana. The company has contracted 22,000 hectares of its own managed land and a secured letter of intent for an additional 288,000 hectares. The organization in Ghana presently includes 16 large-scale Norwegian farmers with experience in farming, ecologic farming, agronomy and operations in developing countries, leading an organization of 160 local workers.
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