Greenalia opens biomass power plant of 50 MW in Spain

Spanish forestry and energy group Greenalia SA (BME:GRN) has opened the Curtis-Teixeiro biomass-fired power plant with 50 MW of capacity and started selling the electricity on March 1.

Located in Spain’s northern region of Galicia, the Curtis-Teixeiro project involved an investment of EUR 135 million (USD 153.3m) and 19 months of construction, which was completed ahead of schedule, the company said today.

The plant will use as feedstock forestry residue supplied by the company's subsidiary Greenalia Forest.

The output of Curtis-Teixeiro is sold under a remuneration rate secured in the Spanish government’s 2016 auction.

Greenalia expects the power plant to pull in annual revenues of EUR 37 million and earnings before interest, tax, depreciation and amortisation (EBITDA) above EUR 17 million. This will represent recurring income of more than EUR 1.05 billion for 25 years worth of electricity sales and EUR 340 million for Greenalia Forest for supplying biomass.

The Spanish ministry for the ecological transition has recently updated the remuneration parameters for certain renewable power generation facilities, allowing for payments for operations to increase to 7,500 from 6,500 hours annually. This measure will reflect favourably on Curtis-Teixeiro’s financial results by adding EUR 5 million to its revenues and more than EUR 2 million to EBITDA, Greenalia said.

(EUR 1.0 = USD 1.136)

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