About Us

Agrofarm will use the investment funds to acquire additional distressed assets (power plants) refurbish same and increase their overall generation always under contract for off take with GSE. They also seek to acquire and or build a small vegetable oil milling plant which will enable them to create oil for the bio mass projects at economical prices based on acquiring waste cotton seed from Greece or other European countries. The company will also use funds to acquire vegetable oils at the best prices achievable and for normal working capital

The company has acquired an enviable reputation in Italy as a genuine acquirer of bio mass assets and as an efficient generator of combined heat and power to GSE. This has placed the company in an ideal position to acquire further plants at distressed prices and generate extremely attractive unlevered internal rates of return.

The company has recently agreed terms with a number of receivers, courts and distressed developers to acquire further plants. It is the company’s intention to continue on this acquisition trail utilizing funds raised through either equity investors or the issuing of additional debt instruments.

As stated Greenworld Power (a subsidiary of the company) owns and operates power stations in Northern Italy. These power stations operate by incinerating vegetable oils in order to generate combined heat and power. The output is connected via the Italian Grid and, as a result of Italian laws, attracts not only a price per kilowatt of electricity generated but also a range of “green subsidies” which creates an income of 28 Euro Cents per kilowatt hour of electricity generated. (Euro 280 per Megawatt compared for example to UK Power Purchase agreements for base load generation which today stand at circa £42-£45 per Megawatt)

Collection and payment is made via GSE, which is legal requirement and are guaranteed for 15 years from the date of connection to the Grid by the Italian Government. All of the existing plants have been connected in before end of 2012. It is proposed that any new acquisitions will have a minimum of 8 years of the subsidy remaining.

Each power station uses approximately Euro 126.5k of oil per month in order to generate circa 1 Megawatt of electricity. Therefore the funds raised will go towards this process. The more funds that are raised the more power plants that can be acquired.

As each plant is commissioned the company will be able to raise an invoice at the end of each month to GSE for circa Euro177k to Euro190k, reflecting the power generated. On top of which the sale of heat increases the IRR of each plant. The company has the option to factor these invoices through BNP Paribas as GSE (and other clients) can take up to 90 days to settle their accounts.