20th Sep 2019 13:23
(Alliance News) - SDCL Energy Efficiency Income Trust PLC on Friday said it will buy a portfolio of energy generation assets located in Spain for EUR64 million.
The investment company focused on the energy efficiency sector said the portfolio has nine operational projects providing in aggregate 125 megawatt of energy. The portfolio comprises five combined heat and power plants, two olive processing plants and two biomass plants.
"We are delighted to be making our first investment in Continental Europe, consistent with the policy and strategy of the company. This portfolio achieves high levels of combined electrical and thermal efficiency, as well as producing clean and renewable energy. It represents an investment in a highly cash generative and proven operational portfolio and further diversifies SEEIT, in terms of geography, technology and application," said Jonathan Maxwell, chief executive and founder of the company's manager Sustainable Development Capital LLP.
"The vendor, from whom we are acquiring the assets and who will continue to operate and maintain the portfolio, is a major industrial group and integrated operator in the CHP and biomass energy generation market. We are confident that this portfolio will make a significant contribution to SDCL Energy Efficiency Income Trust's total returns," Maxwell added.
Part of the heat generated is sold within the portfolio to two olive processing plants, the trust said, and the remaining heat is sold to external olive processors. The two olive plants provide feedstock in the form of olive cake for two biomass plants that are also part of the portfolio, which in turn generate 25 megawatt of renewable electricity, sold to the electricity grid.
SDCL Energy said the portfolio benefits from long-term contracted revenue, which mitigate exposure to any fluctuations in commodity prices and, as a result, revenue and costs are relatively stable and predictable over the medium to long term.
SDCL Energy shares were untraded at 112.00 pence each in London on Friday afternoon.
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