Following the announcement on May 19, 2021, ALTRI SGPS SA hereby informs that its wholly-owned subsidiary, GREENVOLT – ENERGIAS RENOVÁVEIS SA, has reached an agreement with a fund managed by Equitix Group on the acquisition of Tilbury Green Power Holdings Limited on June 7th. The owner of a fully operational renewable energy biomass power plant with a net design capacity of 43.6 MW, located in Port Tilbury, Essex, England. Ownership will be allocated to GREENVOLT at 51% and 49% to funds managed by EQUITIX.
The enterprise value of the transaction is £246.5 million. The transaction must meet the customary prerequisites for transactions of this nature.
The Tilbury Power Plant is about 25 miles from central London, so it is strategically located to process waste wood for the area, and there are few alternatives nearby. Its design is based on the traditional grate and boiler technology of well-known suppliers, and by providing renewable base load capacity (energy recovery from waste wood is a key element of the waste grade and circular economy framework), it plays a role in meeting the UK's climate goals play a key role in.
The Tilbury Power Plant is based on mature modern technology and built in accordance with robust specifications. It is considered to be one of the highest-spec power plants in the UK in terms of fire protection and deflagration protection systems. The plant benefits from (i) long-term contracts covering all key operating areas and (ii) stable and highly visible cash flow generation. The compensation framework is based on the RPI index ROC until 2037 and the service life is up to 2054. The 16-year fuel supply agreement fully covers 100% of the plant's demand.
The designed net generating capacity of the power plant is 43.6 MW.
For the year ended December 31, 2020, Tilbury Power Plant reported a turnover of 28.6 million pounds, and adjusted EBITDA for the whole year was 18 million pounds.
This agreement will enable GREENVOLT and EQUITIX to follow its ambitious international growth project, consolidate its position in the European renewable energy sector, and contribute to its business expansion.