15 Jan 2008 05:01:26
UK biofuels investors 'wary'
British-based biofuels projects will find it difficult to obtain financing unless the outlook of the industry improves.
That is according to Argent Energy, which has claimed that the problems of Biofuels Corp have unsettled the "general dynamics" of the sector.
Biofuels Corp was de-listed in August last year and after accruing large debts most of its equity was transferred to Barclays.
Andy Hunter, chief executive officer of the biofuels producer, explained that many investors will now be wary of putting their money into biofuel firms in case they collapse.
Speaking at the Reuters Global Agriculture and Biofuel Summit, he commented: "Until the general dynamics of the market start to sort themselves out I think it is unrealistic to expect investors to put more money into the sector where a number of them have been very badly burnt.
"Clearly as one of the most high profile IPOs to date, the fact that the business collapsed as far as the original investors are concerned has not helped the industry."