Enefit Green, a subsidiary of Eesti Energia, engaged in the production of renewable energy, on Friday sold its Brocen cogeneration plant and pellet plant in Latvia.
The power plant and pellet plant were sold to Warmeston for 32 million euros, the portals menafn.com and Renewables Now reported.
“The goal of Enefit Green is to increase the share of wind and solar energy in the Baltics and Poland. We are currently building six wind farms in Finland, Estonia and Lithuania and four solar plants in Estonia, Latvia and Poland with a capacity total of 715 megawatts. The sale of biomass cogeneration plants allows us to focus more on our strategic business direction”, commented Innar Kaasik, member of the board of directors and director of production of Enefit Green.
He thanked the team at Brocen Station and the factory and added that this professional team represents a “valuable foundation for the growth of Warmeston”. Following completion of the transaction and transfer of assets, the cogeneration plant, pellet plant and employees will continue their current activities within the Warmeston Group.
The subject of the transaction is the cogeneration business in Brocen, which includes the cogeneration plant and the pellet plant completed in 2016. The business unit has 39 employees and the electricity produced is sold to the Latvian electricity grid, while the heat is used to dry the raw materials in the adjacent pellet factory. The company’s annual pellet production amounts to approximately 155,000 tonnes. The pellets are sold to energy companies, wholesalers and retail customers.
Enefit Green was assisted by LHV as financial advisor, KPMG in due diligence and TGS Baltic as legal advisor. Warmeston was advised by Superia Corporate Finance and Cobalt. The transaction was financed by Swedbank Eesti.
According to Enefit Green’s website, the company so far had three plants using biomass for electricity and heat production: in Paide and in Valka and Brocen in Latvia.
The annual electricity production of the Brocen cogeneration plant is 33.3 gigawatt hours, which is sold to the Latvian electricity grid and which covers the annual electricity needs of 11,100 families with average consumption. The annual thermal power of the power plant is 125 gigawatt hours, which powers the pellet factory complex.
Eesti Energia established Enefit Green in 2016 to consolidate all of the group’s renewable energy production units into a single company. The company has been a listed company since 21.10.2021, whose shares are listed on the Nasdaq Stock Exchange in Tallinn. The company’s shareholders are Eesti Energia with 77% and investment funds, pension funds and retail investors with 23%
2023-12-30 07:57:00
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