In February 2023, Perpetual Next, the Dutch climate technology and sustainable raw materials group, initiated an adjustment of its business and financing strategy. With its strategy, Perpetual Next anticipates structurally higher interest rates in combination with the scarcity of natural gas and the increasing demand for biogas.
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To this end, Perpetual Next has reduced its debts, from EUR 161 million to approximately EUR 39 million in the past three months, and has also made a split within the company with a separate focus on biogas and biocarbon.
Debt reduction of EUR 122 million
The debt reduction of EUR 122 million is the result of the acquisition of debts from various financiers and the subsequent reduction thereof.
In addition, the largest participant in Perpetual Next, Momentum Capital, has also made a significant contribution by converting 83 percent of its shareholder loans to Perpetual Next into Certificates Series B.
The debt reduction results in an annual saving of approximately EUR 10 million in interest expenses.
Equity partner for the biogas division
With the completed separation of Perpetual Next into business units that are legally and financially separate, in the spring the search was started for a new equity partner for Perpetual Next Bio-conversions BV, which comprises the Biogas division.
The Biogas division includes the biogas production sites in the Netherlands and the United Kingdom (UK).
After the completion of the new capital injection, an acquisition program of biogas projects will be carried out with, among other things, a strong focus on Poland, where the first acquisitions are in preparation.
Completed merger of biocarbon technology companies
Perpetual Next has completed several acquisitions of technology companies focused on biocarbon and has merged these companies into the Biocarbon business unit.
Within Biocarbon, high-quality carbon is produced from organic waste and residual flows, for use in the production of steel, cement, and other products. This division with its production facilities is now completely debt-free and is also being prepared for the entry of equity partners.
The choice of long-term equity and financing partners goes together with the decision not to use short-term financing instruments with high-interest rates.
As a company, we anticipated a changing market and in a short time implemented the separation of the divisions and the merger of various technology companies. At the same time, our debts have decreased enormously, with focus and specialized investors we can now buy and build new biogas and biocarbon production facilities per division. I am proud that they all run on organic waste and residual flows, commented Rene Buwalda, CEO of Perpetual Next.
Streamlined organization
With 135 employees and six production facilities in several European countries, Perpetual Next is organized into three business units (BUs), each with its own specialisms, dedicated teams, and their own strategic partners and customers.
Business Unit Bio-Conversions focuses on the development and acquisition of companies where low-grade organic residual materials are converted into sustainable products and/or semi-finished products, such as bioheat, biogas, green gas, liquid carbon dioxide (LCO2), and biofertilizers.
Business Unit Biocarbon produces renewable carbon from bio-residues including scrap wood based on a technology (carbonization) that Perpetual Next owns and has further perfected. Based on thermochemical conversion, organic waste is upgraded to high-quality carbon in a low-oxygen environment with applications for the steel, cement, and chemical industries and the agri-sector.
Business Unit Developments focuses mainly on the gasification of renewable carbon and/or local agri-residual flows. Gasification creates syngas which can form the basis for products from the chemical industry. By means of linked technology, the syngas can also be converted for products for shipping and utility such as methanol, hydrogen, and green gas.
