The Bulgarian-based company Ebioss Energy signed a deal with Energy China to build two waste-to-energy plants in the UK worth EUR 170 million in total.
The waste-to-energy plants will be located in Newcastle and Hull, United Kingdom, Ebioss Energy stated in the press release published on the Spanish alternative stock exchange MAB where it is listed.
The first plant, called Catfoss, will be located in Newcastle and it will have the capacity to process 72,000 tonnes of waste annually. It will provide the electricity output of 12 MW. A total investment in this plant is estimated at approximately EUR 62 million. The other plant will be built in Hull with the electricity output of 20 MW generated by processing 120,000 tonnes of waste annually. The investment is expected to add up to EUR 107 million.
The investments will be financed with 25% in the form of equity and 75% in the form of project financing by a financial entity designated by Energy China. Equity for both projects will be secured by the Chinese investors (20% Energy China and 31% by a Chinese financial investor), 20% by the developer of projects (Catfoss or Hull) and another 29% by Ebioss Energy or an investor designated by Ebioss Energy.
Ebioss Energy signed an agreement with China Energy Engineering Corporation in May on the joint implementation of gasification projects in UK, China and other markets. Ebioss Energy has made its project pipeline worth a total EUR 258 million available to Energy China Group for joint analysis. Following the conditions established in the framework agreement, Energy China as a partner on these projects will be in charge of the construction of the projects on the basis of two Engineering, Procurement and Construction (EPC) contracts, according to the statement Ebioss Energy published earlier this year.
Besides, the Chinese company will subcontract to the Ebioss subsidiary, Eqtec Iberia, to implement Its Eqtec Gasifier Technology (EGT) and help in raising at least 75% of the project financing through Chinese and international banks.
With the investment and improvement of technology, Ebioss Energy has focused on the design of a cost-effective business model based on the development and construction of gasification plant projects which will not depend on government subsidies.