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SDCL Energy Efficiency Income in EUR64m Spanish cogeneration deal

SDCL Energy acquires 50% stake in US energy portfolio for $110m

SDCL Energy Efficiency Income in EUR64m Spanish cogeneration deal – SDCL Energy Efficiency Income (SEIT) has struck a deal to acquire a portfolio of cogeneration assets in Spain for around EUR64m.

SEIT says that the substantial majority of the portfolio’s revenues are investment grade, with nine operational projects providing in aggregate 125 MW of clean and efficient energy generation. The portfolio comprises five combined heat and power (CHP) plants, two olive processing plants and two biomass plants.

Electricity generated to be sold to the Spanish grid

Further details from the announcement include:

  • The CHP plants together meet the high combined electrical and thermal efficiency standards required by SEEIT from natural gas CHP and generate 100 MW of electricity and heat;
  • Part of the heat generated is sold within the portfolio to two olive processing plants and the remaining heat is sold to external olive processors. The two olive processing plants within the portfolio provide feedstock in the form of olive cake for two biomass plants that are also part of this portfolio, which in turn generate 25 MW of renewable electricity;
  • Heat generated is used by the projects within the portfolio or sold to nearby users, electricity from the projects is sold to the grid in Spain under the regulated energy regime;

SEIT has agreed to acquire the project equity in the portfolio, which has a weighted average remaining term of approximately 14 years. The company intends to keep in place existing project debt finance facilities associated with the portfolio which are in compliance with its borrowing limits.

Fourth deal since launch for SEIT

The investment is SEIT’s fourth acquisition since launch and it says that it is continuing to review a substantial pipeline of new investment opportunities, a number of which are at an advanced stage.

SEIT: SDCL Energy Efficiency Income in EUR64m Spanish cogeneration deal


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