Spanish eucalyptus forest industry and energy major Ence – Energía y Celulosa has announced that it has closed the purchase of EDF Energies Nouvelles's stake in the 27.1 MWe Lucena biomass power plant in Córdoba, Spain.
According to a statement August 2, Ence has executed the deal through a capital and debt acquisition structure that gives it a 90 percent share of the company. With the acquisition Ence has increased the installed power capacity of its energy business by 19 percent to reach 170 MWe. As fuels, the Lucena biomass power plant uses olive tree prunings and orujillo, a biomass residue derived from olive oil production which is very abundant in the surroundings of the installation.
Ence takes a new step in the fulfilment of its Strategic Plan and aims to achieve the EUR 80 million EBITDA in its independent power generation business by 2020. We expect to achieve significant improvements by optimizing the supply of biomass to the plant, supported by the strong knowledge and management capacity of Ence in the field of agricultural biomass and forestry, where we are leaders in Spain, said Ignacio Colmenares, Vice President and CEO of Ence in a statement.
Ence has valued the plant at EUR 28 million, to which will be added the improvements by synergies and optimization of the biomass supply that Ence expects to materialize quickly, once it incorporates the implementation of its management model to the operation of the facility. The EBITDA of the acquired plant will contribute EUR 5 million, thus increasing the recurring EBITDA of Ence Energía to over EUR 50 million annually.
