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Ence Acquires EDF Energies Nouvelles' Stake in Lucena Biomass Power Plant in Spain

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.

Sept. 1, 2017 – Spanish pulp producer Ence – Energía y Celulosa recently closed the purchase of EDF Energies Nouvelles's stake in Lucena's power generation plant in Córdoba (southern Spain), which has a total capacity of 27.1 MW. Ence has executed the operation through a capital and debt acquisition structure that entitles it to 90% of the company's economic rights.

After the operation, Ence increases the installed power of its energy business by 19% and reaches 170 MW of capacity.

“Ence takes a new step in the fulfillment of its Strategic Plan which aims to achieve EUR80 million EBITDA in its independent power generation business in 2020,” said Ignacio Colmenares, Vice President and Chief Executive Officer of Ence. “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.”

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.

The acquired plant will contribute with an annual EBITDA of 5 million Euro/year, thus Ence Energía will already have a recurring EBITDA of more than 50 million Euro/year.

Ence has valued 100% of the plant at EUR28 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.

Ence is a leading European producer of eucalyptus pulp and renewable energy using forest biomass. To learn more, please visit: www.ence.es.

SOURCE: Ence