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Ence purchases rights to install 50 MW biomass power generation plant at Elcogás' GICC plant in Puertollano, Spain

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Ence purchases rights to install 50 MW biomass power generation plant at Elcogás' GICC plant in Puertollano, Spain

April 27, 2018 - 08:23

MADRID, Spain, April 25, 2018 (Press Release) -The agreement reached nearly a year ago with Elcogás for the purchase of the site of its GICC plant in Puertollano (Ciudad Real), and the environmental and administrative steps necessary to set up a biomass plant, ENCE Energía y Celulosa has reached an agreement to purchase the rights for installing a biomass power generation plant of 50 MW in said location. Likewise, ENCE has signed a contract with Sener for the turnkey construction of the plant.

The study and development of the project has been worked on in great detail for one year in order to obtain all necessary permits and authorizations, and to guarantee that the plant is energy-wise optimatly located and that the best engineering and construction quality, is delivered together with a supply of competitive and stable biomass.

The support of Endesa ─one of the main shareholders of Elcogás─ should be highlighted: It has been forthcoming since the projects inception as has been its commitment to contribute to the economic development of Puertollano, the creation of employment in the area and the use of important local natural resources.

In the surroundings of the future Puertollano Plant there is an abundant biomass assured and also the possibility of having a stable supply of fuel at a competitive cost. The plant will mainly use vine shoots and orujillo, as well as local forest residues, all of which will contribute to the sustainable best use of these renewable resources and an important generation of rural employment.

The signed construction contract will provide the plant with the most advanced technologies to guarantee optimum environmental performance. The investment that ENCE foresees is of 115 million € and it is estimated that it will contribute an annual EBITDA of 13 million €. The commercial is planned for the second half of 2019 and will thus complement the biomass plant that ENCE is currently building in Huelva.

The expected joint EBITDA of these two new operations will exceed 24 million € per year, with which ENCE will achieve an estimated EBITDA of 84 million € / year in its independent energy business by 2020, exceeding the objective set out in its Strategic Plan 2016-2020 of reaching an EBITDA of 78 million €.