Ethanol plant secures US$17mn

Published: May 4, 2011

Cordiant is latest investor in Hungarian  project.

Cordiant Capital, a Canadian emerging markets fund manager, has committed US$17mn towards the construction of a US$214mn corn ethanol production plant in Hungary.

Pannonia Ethanol is expected to double Hungary’s ethanol output when it is completed early next year. It will have the capacity to produce up to 240mn litres of fuel-grade ethanol a year.

The project’s other investors have included Overseas Private Investment Corporation (OPIC) and the Export-Import Bank of the United States.

Demand for renewable fuels in Europe is increasing due to the EU’s Renewable Energy Directive, which requires at least a tenth of energy used in transport to be generated from renewable sources by 2020.