US energy co AES seeks to join Israeli biofuel venture

GNRY produces steam from wood chips, not oil.

AES Corporation (NYSE: AES) is pursuing contacts for expanding its activity in Israel. Sources inform ''Globes'' that the company is in negotiations to invest in Israeli alternative energy company GNRY Ltd. Industry sources estimate the deal at NIS 25-27 million.

GNRY produces electricity from steam generated by burners, which use wood chips as fuel. The company set up its first facility in Israel at the Galam factory at Kibbutz Maanit at an estimated investment of $7 million. Dan Schneid is the CEO of the company.

The facility generates electricity for more than 25% less than other energy sources available on the market, including oil, and liquid petroleum gas. GNRY's generators replaced oil-fired generators at Galam, which emitted nitrogen oxide and greenhouse gases. The facility will use 25,000 tons of wood chips a year.

GNRY is the second alternative energy venture in which AES is showing interest. Earlier this month, "Globes" reported that the company may become a partner in a 400-megawatt wind energy farm project to be built by Mei Golan Wind Energy Development (1988) Ltd. on the Golan Heights at an investment of $500 million.

Published by Globes [online], Israel business news - - on August 20, 2008

© Copyright of Globes Publisher Itonut (1983) Ltd. 2008

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