DONG Energy and the Investment Fund for Developing Countries enter into a cooperation on the Chinese market

04.10.2013 00:00

​DONG Energy and the Investment Fund for Developing Countries (IFU) enter into a cooperation to establish the Inbicon technology on the Chinese market

DONG Energy's business area New Bio Solutions has entered into a cooperation with IFU. The investment fund is to contribute to the introduction of the bio-based Inbicon technology for production of second generation bioethanol on the Chinese market.

"Among other things, this cooperation will mean that IFU becomes a consulting partner and co-owner of our office in Beijing which is responsible for the commercial introduction of the Inbicon technology," said Henrik Maimann, who is Vice President in DONG Energy and responsible for the business area New Bio Solutions.

IFU, a state-owned fund, operates on market terms and only invests in projects which are considered to be commercially viable, and which create an impact on the development in the individual countries.

IFU signing; Anders Nellemose and Henrik Malmann

Senior Invetment Manager in IFU, Anders Nellemose, and Henrik Maimann from New Bio Solutions signing cooperation agreement

 

"In China, there's major political focus on the country's great climate challenges, so it's a strategic key sector which we'll now invest in together with DONG Energy and a number of Chinese companies," said Anders Nellemose, Senior Investment Manager in IFU. "Through this partnership, we'll come across as a strong Danish unit which introduces green technology on the market and invests in specific bioethanol plants. It's a good platform which can pave the way for further investments in bio-based technologies, and it contributes to the good cooperation which we are currently experiencing between China and Denmark," said Anders Nellemose.

DONG Energy's New Bio Solutions will sell the Inbicon technology as a franchise. This means that potential customers buy the Inbicon technology to establish second generation bioethanol plants and pay DONG Energy a licence for know-how, consultancy services and development.

"We've decided to invest part of the licence fee in the establishment of the individual plants to show faith in our own technology, and IFU is ready to match our investments in the Chinese Inbicon projects. We'll then be in a position to withdraw when the plants have proven their efficiency and operational reliability," said Henrik Maimann.

IFU invested for the first time in China in 1987 and today, IFU has invested more than DKK 10 billion in China together with a number of Danish companies.