Greenfield Project Management Ltd has confirmed that it has entered into an agreement with Litasco SA, Geneva which both parties intend will lead to the conclusion of an offtake (sales) agreement for the output of bioethanol from the first phase of Greenfield’s bioenergy complex at Mozyr, Republic of Belarus.
Litasco (LUKoil International Trading and Supply Company) is the exclusive international marketing and trading company of the Russian LUKoil Group. Litasco is one of the world’s major traders of crude oil and refined petroleum products, handling physical volumes of more than two million barrels per day.
Litasco and Greenfield signed a Memorandum of Understanding early this year and project teams from both companies have since been working on a pricing formula which can form the basis of an offtake agreement. Further working meetings aimed at progressing towards this objective are to take place before the end of 2009.
Greenfield is making this announcement at this time on account of several press inquiries which both companies have received, and the publication in some locations of minor details of the companies’ relationship. To clarify, the only formal agreement which exists between the companies as yet is the Memorandum of Understanding.
Litasco operates almost 2,000 filling stations across the European Union. Like all other fuel suppliers, the company will be bound by EU directives on climate change and renewable energy which are now law, and which mandate measures to reduce greenhouse gas emissions by 20% by the year 2020.
Greenfield’s first bioenergy complex in Belarus will initially produce 150,000 metric tonnes of bioethanol annually, rising to 450,000 tonnes as phases 2 and 3 are completed. Litasco intends to blend Greenfield’s ethanol with LUKoil’s petrol to supply E5, E10, E85 and other petrol/ethanol blends (E Blends) as required by the EU Directives.
Greenfield is also conducting discussions with a major German fuel logistics and trading company with a view to developing blending and storage facilities for E Blends in Kaliningrad, Russian Federation, in order to cater for the needs of the EU market from 2014 onwards.
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NOTES FOR EDITORS
Greenfield Project Management Ltd
Greenfield Project Management Ltd is an investment and project development company incorporated in Ireland. Greenfield specialises in bioenergy, with a focus on Belarus, Russia and Ukraine.
Greenfield’s immediate focus, under its agreements with Government of Belarus, is the construction of bioenergy facilities in Belarus to produce 570 million litres of bioethanol annually, together with biogas and green electricity. In conjunction with our offtake partner, Litasco SA, the ethanol will be blended with petrol to make E5, E10, E85 and other petrol/ethanol blends for European Union and CIS markets.
The bioenergy complex will be located at Mozyr, producing over 570 million litres of bioethanol annually plus biogas and electricity. This project and future projects will be strongly carbon-saving and will make a substantial contribution to reducing greenhouse gases.
Greenfield plans, in conjunction with the Government of Belarus and international organisations such as the UNDP, to extend production of biofuels and to use the cultivation of biomass for biofuels as a means to speed up decontamination of the lands affected by radioactive fallout from the Chernobyl nuclear explosion in 1986.
Litasco SA
Litasco (LUKoil International Trading and Supply Company) is the exclusive international marketing and trading company of the LUKoil Group. Litasco is one of the world’s major traders of crude oil and refined petroleum products, handling physical volumes of more than two million barrels per day. With our head office in Geneva, and additional trading and business development offices worldwide, Litasco manages LUKoil’s global supply, marketing and trading needs.
The Litasco Group is made up of subsidiaries and branches in the United States, Germany, the Netherlands, Sweden, Dubai and Singapore. Representatives and consultants of the group have established our presence in Russia, South Africa, Argentina, Brazil and China.
In total, the Litasco Group employs over 300 staff and is present in thirteen different countries. Litasco deals with more than two thousand suppliers and customers, including all of the world’s major oil corporations.
More information on both companies and the on Chernobyl Bio-clean Programme is available at greenfieldpartners.eu, litasco.com and at lukoil.com
