7th Feb 2022 09:04
(Alliance News) - SDCL Energy Efficiency Income Trust PLC agreed to acquire an 80% interest in a biomass cogeneration plant in Portugal and increased its ownership of projects at the Oliva Spanish Cogeneration in Spain.
The London-based investment company focused on the energy sector bought the 80% interest in the biomass plant for EUR22 million from Capwatt SA, a power production project operator and developer based in Portugal. Capwatt will retain a 20% interest.
The investment is funded from the company's existing cash resources and is expected to be completed in the coming weeks, SDCL said.
The project generates heat and power from sustainably sourced biomass. It supplies on-site heat to an industrial facility manufacturing medium-density fibreboard owned by wood-based panel manufacturer Sonae Arauco PT.
The project also generates electricity, which benefits from the Portuguese Feed-in-Tariff to the grid. As a result, SDCL said it expects the project to produce at least a further 23 years of stable, inflation-linked, contracted cashflows with no demand risk.
SDCL added that it also has acquired the interest of an unnamed minority shareholder of the Puente Genil projects for a consideration of EUR12 million. Puente Genil refer to three of the nine total projects at Oliva Spanish Cogeneration in Spain which focuses on biomass and olive pomace processing. As a result, SDCL now holds sole ownership of eight of the nine projects.
Chief Executive Jonathan Maxwell said: "The biomass cogeneration plant is SDCL's first investment in Portugal and demonstrates our commitment to growing our presence in Iberia and supporting our ambition for increasing geographic diversification."
Shares in SDCL were up 0.9% at 115.50 pence on Monday morning in London.
By Heather Rydings; [email protected]
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