Business
Repowering of Newry Biomass Limited
Repowering of Newry Biomass Limited.
About this update from Forgent Plc
[{"type":"text","content":"\n \nRNS Number : 6146K React Energy PLC 31 December 2015 \n\n31 December 2015\n \nREACT Energy plc \n(\"REACT\" or the \"Company\")\n \nRepowering of Newry Biomass Limited\n \nREACT, the renewable energy developer and operator focusing on the production of clean energy in the UK and Ireland, announces that Newry Biomass Limited (\"NBL\"), a 50.01% subsidiary of the Company, which owns a Biomass Gasification project located in Newry, Northern Ireland, has entered into an agreement with Spanish MAB-listed EBIOSS Energy AD (\"EBIOSS\") to purchase its EQTEC Integrated Biomass Gasification Power Plant, with a power output of 4MW, which NBL will use in the repowering of the Newry Biomass gasification project (\"Newry Biomass\"). The total cost of repowering Newry Biomass, including the gasification power equipment to be purchased from EBIOSS, is estimated to be approximately £8 million.\nNewry Biomass is a 4MW Biomass gasification project located in Newry, Co. Down, Northern Ireland. The project is a joint venture with Farmer Business Development plc (\"Farmers\"), the Company's 23.2% shareholder. NBL is a 50.01% subsidiary company of REACT. Planning permission for the waste to energy plant converting 25,000 tonnes per annum of wood was received in May 2009. The project cost £11.7 million to construct and was funded through shareholder equity and loans. REACT invested £5.75 million and currently retains 49.11% of the economic benefit of the project, whilst Farmers has 50.89%. \nDue to underperformance of the original gasification technology, a decision was made to repower the project with a new technology and with a new technology provider. Accordingly, the project was placed on a 'care and maintenance' programme in September 2014, pending additional funding required to engage a new technology provider, which the Company has today chosen. NBL has already exported electricity to the grid however the repowering of the project includes the completion of upgrades, subject to available funding, to the local electricity grid infrastructure which will increase export capacity from the site from 1MW to 4MW.\nThe gasification equipment purchased from EBIOSS will cost €4.963 million, fully payable in cash. It has been contractually agreed between NBL and EBIOSS that the equipment purchased will form part of an Engineer, P...