Energía y Celulosa (Ence) closed the purchase of EDF Energies Nouvelles’s stake in Lucena’s power generation plant in Córdoba, Spain.
According the announcement, the acquired plant will contribute with an annual EBITDA of EUR 5 million per year, thus Ence Energía will already have a recurring EBITDA of more than EUR 50 million per year.
The plant has a total capacity of 27.1 MW. After the operation, Ence increases the installed power of its energy business by 19% and reaches 170 MW of capacity. The energy complex of Lucena consumes olive pulp as fuel (biomass derived from the treatment of the olive for extraction of the oil), very abundant in the surroundings of the installations, and pruning’s of the olive tree.
Ignacio Colmenares, Ence’s Vice President and CEO, commented:
“Ence takes a new step in the fulfillment of its Strategic Plan which aims to achieve EUR 80 million EBITDA in its independent power generation business in 2020. We expect to achieve significant improvements thanks to the optimization of the biomass supply to the plant, supported by the strong knowledge and management capacity of Ence in the field of agricultural and forestry biomass, where we are leaders in Spain.”
Ence has valued 100% of the plant at EUR 28 million, before the improvements by synergies and optimization of the biomass supply that Ence expects to materialize quickly, once it incorporates the implementation of its management model to the operation of the facilities.
The company executed the operation through a capital and debt acquisition structure that entitles it to 90% of the company’s economic rights.
The company is the leading producer of eucalyptus pulp in Europe with a capacity of 930ktpa and is the second company by sales on the continent. The company exports much of its pulp production through advanced logistics network and the quality of its products, which include TCF pulp, which is produced entirely without chlorine and is highly valued in the countries of northern Europe.