EQTEC plc, a gasification solutions company building a cleaner waste-to-energy industry, announced the signing of an agreement for the proposed acquisition of a 5 MWe project in Drama, northeast of Greece, through the recently created company EQTEC Synergy Projects Limited, a joint venture (JV) between EQTEC and its Greek strategic partners, the German company EPC, ewerGy GmbH (operating in Greece through its local partner, ECO Hellas M IKE).
Once acquired, the joint venture will lead the development of a new biomass-to-energy plant, generating 5 MW of green electricity from local and sustainable forest waste. Due diligence, including financial and technical feasibility, has been performed.
Completion of the project acquisition is subject to the conclusion of a project purchase contract, customary for this type of transaction.
- Synergy Aegean to acquire the biomass energy recovery project in Drama, in north-eastern Greece.
- The joint venture has signed a preliminary project acquisition for the acquisition of the project via a special purpose vehicle to acquire the assets of the project.
- The joint venture is in talks with a number of local banks to provide debt for financing the project at a Loan to Value ratio of between 70% and 80%.
- Active discussions with investors for the equity financing of the SPV are currently underway, with a view to a financial close scheduled for 3Q2022.
- The plant, once operational, is expected to meet the business benchmark target of 12% unleveled TRI and the joint venture team has identified business opportunities that, if implemented, will further increase the returns. project returns.
- The acquisition covers all assets associated with the Drama project, including all rights and permits required for the development, construction and operation of the project as well as the agreements on biomass feedstocks.
- The plant, once operational, is expected to produce around 5 MW of green electricity and up to 8 MW of thermal power, which is essential for the region, from around 35,000 t of locally sourced forest waste.
- The project is considered to be of public interest due to its location in one of the coldest regions of Greece, Nevrokopi, where temperatures have reached -30 Â° C and there is no established network infrastructure. of heating. It will also bring local employment to this particularly high unemployment region.
- The plant has all the licenses, building permits, grid connection and an electricity purchase contract (PPA) already in place.
- The EPC project will be ewerGy.
- Once the optimal financing structure has been obtained for the plant, the company will make further announcements.
Read the article online at: https://www.energyglobal.com/bioenergy/14102021/eqtec-synergy-projects-ltd-to-develop-biomass-to-energy-plant-in-greece/