GreenVolt and Equitix acquire Tilbury Green Power Holdings
Portugal-headed pulp major Altri SGPS S.A (Altri) has recently announced that its wholly-owned subsidiary GreenVolt – Energias Renováveis S.A. (GreenVolt), reached on June 7, 2021, an agreement together with funds managed by the Equitix Group (Equitix), for the acquisition of Tilbury Green Power Holdings Ltd (TGPH) — the owner of a fully operational biomass power plant, with a net design capacity of 43.6 MW, located in the Port of Tilbury, Essex, England.
Altri is a leading Portuguese eucalyptus pulp producer with three pulp mills that have a combined annual capacity in excess of 1 million tonnes. Its wholly-owned subsidiary, Altri Florestal, manages about 83 500 ha of FSC and PEFC forest in Portugal supplying approximately 20 percent of the Group’s wood demand. self-sufficiency.
Its wholly-owned subsidiary GreenVolt currently has five biomass power plants with an installed capacity of 96.7 MW in operation.
According to a statement, the agreement with Equitix entails ownership of Tilbury Green Power Holdings will be split with GreenVolt having 51 percent share and funds managed by Equitix the remaining 49 percent.
The transaction amounts to an enterprise value of GBP246.5 million (≈ EUR 286.9 million) and is subject to customary closing conditions being met. As of the year ended December 31, 2020, Tilbury Power Plant reported a turnover of GBP28.6 million (≈ EUR 33.3 million) with adjusted EBITDA for the year being GBP18.0 million (≈ EUR 20.9 million).
Tilbury Power Plant is situated approximately 25 miles (40 km) from central London, and it is therefore strategically located to process waste wood for the area, with few alternatives in the vicinity. and plays a key role in meeting the UK’s climate objectives by providing renewable baseload capacity while energy recovery from waste wood is a key element of the circular economy framework.
Tilbury Power Plant is built to a robust specification based on proven modern technology. Its design is based on conventional grate and boiler technology from reputable suppliers and it is considered one of the highest specification plants in the UK in relation to fire and deflagration protection systems.
The plant benefits from (i) long-term contracts covering all key operational areas and (ii) a stable and highly visible cash flow generation, with a remuneration framework underpinned by RPI-indexed Renewable Obligation Certificates (ROCs) through to 2037 and useful life until 2054. The fuel supply is fully covered by a 16-year supply agreement covering 100 percent of the plant’s requirements.
This agreement will allow GreenVolt, together with Equitix, to follow its “ambitious project of international growth, solidifying its position in the European renewable energy sector, and contributing to the expansion of its business.”