Ellomay buys majority in 2nd Dutch waste-to-energy project

Israeli energy and infrastructure company Ellomay Capital Ltd (TASE:ELLO) said today it has bought a 51% stake in the developer of a waste-to-energy plant in the Netherlands.

Ellomay Luxemburg Holdings Sarl has acquired the majority stake in Groen Gas Oude-Tonge BV from a unit of fellow Israeli company Ludan Engineering Co Ltd (TLV:LUDN). The project company is developing an anaerobic digestion plant in the town of Oude Tonge that is expected to produce about 3.8 million cubic metres (134.2 cu ft) of biogas per year and generate some EUR 3.4 million (USD 3.1m) in annual revenues.

Cooperatieve Rabobank UA has agreed to provide two loans with principal amounts of EUR 3.15 million and EUR 1.7 million to the project company, as well as an on-call credit line of EUR 100,000. The total cost of the project is estimated at EUR 8.5 million.

An affiliate of Ludan will build the plant and is also expected to provide operation and maintenance (O&M) services.

“We aim to act fast in Dutch biogas market, in order to maximize its potential before it becomes mature. The Dutch renewable energy market is expected to grow rapidly over the next years and Ellomay aims to become part of its success," said Ran Fridrich, CEO and director of Ellomay.

The two Israeli companies have a similar partnership for the construction of an AD plant in Goor, the Netherlands. Ellomay holds a 51% stake in that project as well.

(EUR 1.0 = USD 1.093)

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