Renova identifies $13 million in cost overruns at Idaho plant; development halted; shares suspended; negotiating new finance

In Idaho, Renova has completed a review of cost overruns of up to $13 million in the construction of its Heyburn plant, which drove overall project cost to as high as $59 and resulted in a liquidity shortage and suspension of the company’s shares on the London AIM exchange.

The company has halted work on project development due to the cost overruns, and is negotiating with existing investors and lenders as well as potential sources of new financing.

Recently, Renova has been active in securing joint ventures in Argentina for soy-based biodiesel. Vicentin SAIC, Glencore, Aceitera General Deheza, Bunge and Repsol are among other companies that will construct four new biodiesel plants with over $135 million in invested capital.

The Argentine federal government increased the export tax on soybeans, soy products and corn, but exempted biofuels from increases. This move is expected to spur exports of Argentine biodiesel and ethanol to the EU and the US. The province of Santa Fe, which hosts most of the major biodiesel plants, has additional incentives in place. Argentina has a 5 percent biofuel mandate in place for 2010.

Free Subscription to the Daily Biofuels Digest e-newsletter

Related Stories

Rising corn, construction prices force Idaho ethanol project into bankruptcy; Nebraska project is idled

Rising corn prices from flooding, and rising construction prices, have caused the construction halt at the Wahoo, NE ethanol project and a bankruptcy filing by US companies controlled by Renova Energy...

Today in Biofuels: Bioenergy of America files for bankruptcy, Biodiesel Corp narrowly escapes; 86 percent of new Brazilian cars are flex-fuel; GM CEO says US needs 20,000 E85 stations

Top Story:In New Jersey, Bioenergy of America filed for bankruptcy yesterday, listing assets of $1-$10 million and debts of $10-$50 million. The company represented 15 percent of US biodiesel supply i...

60 Mgy Pacific Ethanol plant in Idaho faces fines over “eye-watering” odor

In Idaho, the 60 Mgy Pacific Ethanol plant in Burley is facing daily fines from the local town council for zoning violations stemming from odors characterized in an AP story as "eye-watering". The com...

VeraSun Energy halts 110 Mgy corn ethanol plant in Minnesota “indefinitely”, stock trading halted

In South Dakota, VeraSun Energy, which filed fro Chapter 11 bankruptcy, had trading in its shares halted following the bakruptcy. The NYSE said that a formal delisting of the stock would commence soon...

Pacific Ethanol capital raise clears path for completion of California corn ethanol plant, analyst says, but liquidity concerns remain

Raymond James analyst Pavel Molchanov released a report on Pacific Ethanol's capital raising activities in the face of a liquidity challenges brought on by construction cost overruns and increasing co...

Idaho cellulosic ethanol plant proposal moves to next round

In Idaho, Biorefinery Partners had advanced to a second round with the Department of Energy loan guarantee program for cellulosic ethanol production. The Shelley, Idaho plant would produce 18 Mgy of e...