Ence awards construction contract for 50-MW biomass plant in Spain
Forest biomass. Author: Oregon Department of Forestry. License: Creative Commons, Attribution 2.0 Generic.
Spanish pulp mills operator Ence Energia y Celulosa SA (BME:ENC) announced on Wednesday it has signed a turnkey construction contract with engineering and technology group SENER for a 50-MW biomass plant.
Located in Puertollano, Ciudad Real province, the project will require EUR 115 million (USD 140m) in investments. It will mainly use vine shoots and local forest residues as fuel.
The company expects to bring the facility online in the second half of 2019, together with its biomass plant in Huelva. Together, these two facilities are expected to generated earnings before interest, tax, depreciation and amortisation (EBITDA) of EUR 24 million per year, enough for the firm's energy business to reach an EBITDA of EUR 84 million in 2020, Ence noted.