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Korean Investors Ready To Pump In $826.52 Million Into The Manufacturing Of Woodpellet

    A wood pellet company, with an investment of $USD 400million or (FJ$826.52m) being pumped in by Korean investors was expected to bring in around $FJD100 million in annual export
25 Oct 2016 12:02
Korean Investors Ready To Pump In $826.52 Million Into The Manufacturing Of Woodpellet
Nabou Green Energy Chief Executive Officer my Lee Jun Hyung. Photo: CHARLES CHAMBERS

 

 

A wood pellet company, with an investment of $USD 400million or (FJ$826.52m) being pumped in by Korean investors was expected to bring in around $FJD100 million in annual export earnings for Fiji.

This was confirmed yesterday by the Nabou Green Energy Limited chief executive Lee Jun Hyung.

Nabou Green Energy had invested $USD45 million(FJ92.98) in the construction of a 24MW Biomass Power Plant, which is close to 80 per cent completion along the Queens Highway between Nadi and Sigatoka.

Should the project get off the ground, Fiji would be exporting 500,000 tonnes of wood pellets to be used as renewable energy to Korea and European countries.

The planned factory would also be the biggest in the Pacific, surpassing any in New Zealand and Australia.

Mr Lee said this and other related facilities such as the power plant, pellet storage tank, the power plant and jetty located in Central Division are expected to be completed by mid 2019 in order to start the first wood pellet export in the same year.

In its report presented to Government, the company said the expected annual income from the export of wood pellet would put this industry in the top five export commodity in Fiji.

Mr Lee said more than 1,000 jobs will be created with this pellet project through the construction of the facilities, operation of facilities, plantation, harvesting and trucking.

He said the company would also eradicate Fiji of an invasive species, the African Tulip it would be  used as raw material for wood pellet.

“This will make Fiji the largest wood pellet exporter in the Pacific region.”

Mr Lee said the funding was ready but on hold in Korea as issues such as land for wood pellet storage tanks and foreshore leases for shipping have yet to be settled.

The company has already submitted a mangrove area in Walu Bay to the Department for Lands as the site, but due to Mangrove Protection Plan being reviewed in the Solicitor General’s office, the application process is currently pending.

The company has indicated that the land issue and the export issues with the Fiji Ports Authority would have to be sorted out by November this year or investors will look to another country such as Indonesia or Vietnam.

“We believe this is a great opportunity for Fiji and have funds for the project secured from Korea.”

“We have already successfully secured 100 per cent off-shore funding for 12MW Nabou biomass power plant project when local banks failed to provide funding.”

“We have done so despite exchange rate risk because we believe in Fiji and are here for long-term.

Mr Lee said this showed they were genuine investors “and not just fly-by night investors who only talk.”

 edited by: farzana nisha

Feedback:  charles.chambers@fijisun.com.fj



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