IFC grants $6.25 million loan for biomass plant

Published: 05-Feb-2010

IFC, a member of the Word Bank Group will provide $6.25 million loan to Auro Mira Energy Company Private Limited to build 18 megawatt biomass-based Greenfield power plant in India.

To be based in Kanyakumari district in the southern Indian state of Tamil Nadu, the project is expected to save 76,000 tons of carbon dioxide emissions annually.

IFC’s investment will help the company create new renewable energy-based generation capacity to meet increasing demand for power in the power-starved state and will displace generation from diesel. The project will use local agriculture wastes like rubber wood, plywood waste, cashew nut shells, saw dust, and coconut shells to fire the plant. Power will be sold to the grid, to commercial and industrial users, or to power-trading companies.

IFC’s involvement with Auro Mira Energy as a long- term partner will help attract long-term finance at fixed interest rates in local currency needed to sustain the flow of resources into this critical sector. Auro Mira Energy wants to demonstrate its ability to develop commercially viable and sustainable renewable energy projects with minimum or no subsidies.

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