Israel's Ellomay, Ludan team up on EUR 200m of Dutch biogas projects
Author: Jennifer C. Licence: Creative Commons
Israeli company Ellomay Capital Ltd (NYSEMKT:ELLO) today unveiled a deal with compatriot Ludan Engineering Co Ltd (TLV:LUDN) to enter the Dutch waste-to-energy market with plans to partner in EUR 200 million (USD 220m) of projects.
Ludan owns certain rights in biogas plants, and has been involved in 14 biogas projects in the Netherlands and Spain, according to the announcement.
Under the strategic agreement, Ellomay will acquire at least 51% of each project, with Ludan owning the remaining 49%, upon the achievement of certain conditions, including financial close and receipt of subsidy. The projects are expected to be worth a total of EUR 200 million, including project financing.
Ludan will build and operate the biogas plants and will also receive a development fee for each project.
Ellomay chief executive Ran Fridrich said the Dutch waste-to-energy market is expected to grow rapidly, adding that as part of efforts to increase renewable energy usage, “actions are taken to significantly increase green gas installations in the Netherlands by 2020, which will also assist the Dutch authorities with mitigating the environmental side effects of the growing Dutch milk industry.”
Ellomay has some solar investments in Italy and Spain, as well as a 9.375% indirect interest in Israel's power company Dorad Energy Ltd.