Landkom founder Richard Spinks has emerged at the helm of a biofuels start-up, which is in the "advanced stages" of sealing a $100m project in Ukraine and is planning plants in Canada and Russia.

The move would appear to put him on course to compete with Landkom, the Ukraine farm operator, which earlier this week unveiled its own biofuel plans.

Mr Spinks, who quit as Landkom chief executive last year, said his new start-up, Alternativa, aimed to open four-to-five plants over the next four years producing biofuels, including potentially jet fuel, as well as edible oils and animal feed.

The plants will primarily process oilseed rape, sourced from local growers, who will be tied in to the venture through profit-share agreements.

However, they will also be equipped with facilities to handle other feedstocks, using technology provided by GreenShift, a US biofuels specialist which is partnering Alternativa.

In Newfoundland, Canada, GreenShift has equipped a plant to make energy from breaking down fish waste.

'Built on debt' 

Mr Spinks' move comes as Landkom is also planning a move into biofuels refining, announcing on Monday its ambition to set up a plant fed largely with its own crops.

Ukraine in January introduced mandatory blending of crop-derived fuels into conventional fuels, with the biofuel proportion set to increase by 1.5% a year.

Alternativa is speeding its entry into the sector by focusing on foreign funding pots, given that finding financing within Ukraine is hampered by the country's severe economic difficulties.

"We have gone for things like export guarantee schemes," Mr Spinks told Agrimoney.com.

"Exporters of products we are going to use make it very easy for you to buy their products."

The company might otherwise struggle to find debt at affordable rates, he added.

"As it is, we have built our company on debt. We have achieved just about 100% debt finance for the first refinery."

Secure supplies 

Alternativa will offer growers a share of profits and financing for crop production, for which Ukraine farmers relying on bank loans are, according to analysis group UkrAgroConsult, paying interest rates of 20-30%.

"After the price of your crop, your second consideration is whether you can get it at all," Mr Spinks said, citing a history of companies undermined by failure to secure feedstock supplies.

"Sure, you can buy off the open market. But what's to stop a farmer going elsewhere if prices go through the roof?

"He won't be afraid of a two-year court battle. He can pay for it with the extra margin."