EQTEC plc, a gasification solutions company building a cleaner waste-to-energy industry, has announced that it has signed an agreement for the proposed acquisition of a 5 MWe project in Drama, North Eastern Greece, through the recently established EQTEC Synergy Projects Limited, a joint venture (JV) between EQTEC and its Greek strategic partners, German EPC company, ewerGy GmbH (operating in Greece via its local partner, ECO Hellas M IKE).
Once acquired, the JV will lead the development of a new biomass-to-energy plant, generating 5 MW green electricity from locally and sustainably sourced forestry waste. Due diligence, including financial and technical feasibility, has been completed.
Completion of the acquisition of the project is subject to entering into of a Project Purchase Agreement, customary for this type of transaction.
- Synergy Aegean to acquire the biomass-to-energy Project in Drama, North Eastern Greece.
- The JV 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 JV is in discussions with a number of local banks to provide the debt for the project funding at a Loan to Value ranging between 70 - 80%.
- Active discussions with investors for the equity funding for the SPV are currently underway, toward financial close targeted for 3Q2022.
- The plant, once operational, is expected to achieve the company's baseline target unlevered IRR of 12% and the JV team have identified commercial opportunities that if implemented, will further increase project returns.
- The acquisition involves all the associated assets of the Drama project including all rights and permits required for project development, build and operation as well as biomass feedstock agreements.
- The plant, once operational, is expected to produce approximately 5 MW of green electricity and up to 8 MW of thermal output which is critical for the region, from approximately 35 000 t of locally sourced forestry waste.
- The project is considered of public interest due to its location in one of the coldest regions in Greece, Nevrokopi, where temperatures have reached -30°C and there is no established infrastructure of heating networks. It will also bring local employment in this region of particularly high unemployment.
- The plant has all licenses, building permits, grid connection and a power purchase agreement (PPA) already in place.
- The project EPC will be ewerGy.
- Once the optimal financing structure is secured 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/