IFC eyes minor stake in Auro Mira’s 15 MW biomass facility

The International Finance Corp. is expected to take a minor stake in a biomass power project being developed by Chennai, India-based clean energy producer Auro Mira Energy, according an article today from Reuters India (VCCircle.com).

The IFC, a division of the World Bank, has already committed a $5.25 million loan for the $16 million 15-megawatt project. IFC is an active investor in other renewable projects in India (see IFC invests $15M in WaterHealth for filtration in rural India and IFC pumps up water focus in India with $45M for Jain Irrigatio).

A subsidiary of Auro Mira is expected to develop the facility, which would sell power back to the grid, companies or industrial users, Reuters reported. Construction on the plant is expected to start before the end of the year, with the plant launching in early 2011.

Auro Mira generates power from renewable sources with an emphasis on biomass, water and wind. The company also has plans to move into other cleantech sectors including solar and biodiesel.

Auro Mira has committed to investing $900 million to developing more than 1,000 MW from renewables by 2012. Baring Private Equity Partners, a $5 billion private equity fund founded in 1984, has a majority stake in the company, investing around $50 million in 2006.

In May, Auro Mira said it was looking to sell power generated from its two biomass plants in Tamil Nadu, one with 10 MW and the other at 7.5 MW (see Inside cleantech India: Kal, Aaj aur Kal!). Auro Mira also said it was in talks to raise up to $100 million in private equity, with Baring expressing an interest in putting in $20 million.

Read the article »