In a Letter of Intent (LoI) to Maabjerg Energy Center (MEC), UK-based Pioneer Point Partners has expressed an interest to negotiate up to EUR 160 million investment in a second-generation (2G) bioethanol plant in Denmark, provided that the regulatory framework is settled first.
The Danish Maabjerg Energy Center (MEC) has revealed that it has received a Letter of Intent (LoI) from the UK-based investment company Pioneer Point Partners (PPP). According to a statement, PPP has expressed its intent to negotiate an investment up to EUR 160 million in a second-generation (2G) bioethanol plant in Denmark, provided that the regulatory framework and long-term government support is settled first.
Put on hold
– This is a huge breakthrough for the project, considering that we had to put the plans on hold this autumn, said Jørgen Udby, Chairman of Maabjerg Energy Center in a statement.
In 2014, Maabjerg Energy Center was awarded EUR 39 million in funding from the European Union (EU) NER300 Programme. But in October 2016, the consortium announced that the project would be put on hold as a consequence of not being able to find a political majority that would support the idea of providing public guarantees for the investment. Instead, the consortium was encouraged to find private investors.
– The project was very beneficial to the region, and also very important as part of the politically required green transition. It felt wrong to just abandon the project, and so we decided to do what we were encouraged and instructed to and split the biorefinery into two parts: A non-profit part consisting of the two existing plants: The central heating plant and the biogas plant, and a commercial project consisting solely of the future 2G bioethanol plant. This led to contact with investors such as the Private Equity Investor, Pioneer Point Partners. We have had a really good impression of this company, which has a long track record of investing in renewable energy, working on energy, water, and environmental projects across Europe. We are very optimistic about the opportunities and possibilities in this cooperation, said Jørgen Udby.
Resume government negotiations
The news is received with great enthusiasm among the mayors in Holstebro and Struer – the home towns of the projected 2G bioethanol plant.
– We are passionate about creating growth and local jobs, and we want to take part in the green transition, so the news that the project is still alive is simply fantastic. The district development plans and the approvals from the authorities are already in place, so we are basically ready to welcome the private investors, said H. C. Østerby, mayor of Holstebro.
The plant is projected to be established right on the boundaries of the municipality of Struer, and the utility companies of both municipalities, Struer Forsyning and Vestforsyning, are both involved in the project.
– Being able to help create more local jobs, and simultaneously pave the way for increased green tech export, would simply be amazing. This would even help create more jobs nationwide. The news that private investors will be involved is very assuring. This means that the municipalities in West Jutland will not have to provide the loan guarantees for the commercial part of the project, said Mads Jakobsen, mayor of Struer.
Before making the decision to invest, the regulatory framework for the revitalized project must be settled. Maabjerg Energy Center has resumed negotiations with the Danish Government.
