AOG has transferred 75.1% ownership of Addax Bioenergy, its sugarcane bioethanol and renewable electricity operation in Makeni, Sierra Leone, to a group of investors led by Sunbird Bioenergy Africa (Sunbird Bioenergy group).

AOG, a private investment group founded in Geneva in 1987, is keeping a minority interest of 24.9% as a mark of its confidence in the future of the business.

The Greenfield project Makeni, started in 2008, began production in May 2014 and made first sales in early 2015.

It had to overcome a number of unforeseeable events, which had a significant impact on the timeframe, costs and revenues initially planned.

AOG, as main shareholder, and Addax Bioenergy decided to downscale the operation in June 2015 and to conduct a review of all options for the future.

AOG repaid debt financing from eight development finance institutions (DFI) in December 2015 and bought back minority shareholders in Addax Bioenergy.

This aimed to facilitate any future solution for the company, in particular a transfer to new ownership.

Sunbird Bioenergy group will provide the additional financing to take the project to full commercial operation.

This handover is made by way of a capital injection by Sunbird Bioenergy group into Addax Bioenergy.

Jean Claude Gandur, AOG Founder and Chairman, said: “We are pleased to have found a new majority owner who is passionate about bioenergy and who has a focus on sustainable energy solutions that integrate local communities.”

Sunbird Bioenergy Africa, which will manage and run the operation in Makeni, is an energy company with a portfolio of sustainable biofuel projects in sub-Saharan Africa.

It takes a comprehensive approach to biofuel projects, which includes fair agricultural land leases, sustainable farming and feedstock production, world class biorefineries, as well as inclusive community development and improved livelihoods.

“We look forward to building on the achievements of Addax Bioenergy in Sierra Leone, and restarting commercial operations as soon as possible. This opportunity is a perfect fit with our philosophy and development strategy,” said Richard Bennett, Sunbird Bioenergy’s Director.

“The operation functions on the principles of sustainable biofuels, sustainable local community development and a reduction in carbon dioxide emissions, thereby contributing towards regional climate change goals. At Sunbird Bioenergy, we operate and champion these same principles,” he added.

As part of its commitment to Sierra Leone, AOG has been working with the government for some time to help enhance the country’s energy strategy.

The President of Sierra Leone, His Excellency Dr Ernest Bai Koroma expressed his support for the transfer: “AOG is part of our family in Sierra Leone. They have successfully established this bioethanol operation in our country, which will also feed much-needed electricity into our national grid.”

“We thank them for their approach, which ensures that local communities benefit from the business, and for their commitment to the country, even in challenging times. We look forward to Sunbird Bioenergy carrying on their work and taking the project forward to commercial success,” he added.