September 20 (Renewables Now) - UK investment firm SDCL Energy Efficiency Income Trust plc (LON:SEIT) said today it has agreed to buy a 125-MW portfolio of combined heat and power (CHP) and biomass plants in Spain.
The assets include five CHP plants totalling 100 MW, two biomass facilities with a combined capacity of 25 MW and two olive processing installations, which use some heat from the CHP facilities and provide feedstock to the biomass plants, SDCL said on Friday.
The British investor will pay around EUR 64 million (USD 70.8m) in cash for the acquisition, which will be sourced from a combination of cash on hand and, if appropriate, available debt facilities. The vendor is an unnamed industrial group and integrated operator in the CHP and biomass market.
As part of the transaction, SDCL will acquire the project equity and keep existing project debt. After its closing, expected to take place in the coming weeks, it will take full or majority control over the portfolio.
The nine assets operate under long-term contracts, generating revenue that is “relatively stable and predictable over the medium to long term.” Electricity from the plants is being fed into the Spanish power grid, while part of the heat is sold to nearby users.
Following the deal, the vendor will continue to operate and maintain the plants.
SDCL noted this is its first investment in Continental Europe. The company is now reviewing other investment opportunities, some of which are at an advanced stage, it added.
(EUR 1.0 = USD 1.106)