- MetalNRG invested €700,000 for a 26.66% equity interest.
- The consortium paid €2.1M for an 80% equity interest, with EQTEC holding 20%.
- The plant is expected to be operational by Q2 2022.
- Annual revenues are projected at €2M with €750K EBITDA.
Project Overview
The biomass power plant in Tuscany, Italy, will utilize EQTEC technology to convert straw and forestry wood waste from local sources into green electricity and heat for the community. The project is spearheaded by a consortium led by EQTEC.
Investment Details
MetalNRG has invested €700,000 for a 26.66% equity interest in the project. The consortium, excluding EQTEC, has collectively invested €2.1 million for an 80% equity stake, while EQTEC holds the remaining 20% for a capital contribution of €482,000.
Financial Projections
Once operational, expected by Q2 2022, the plant is projected to generate annual revenues of approximately €2 million and an EBITDA of around €750,000. The estimated unlevered internal rate of return (IRR) is 20%.
Operational Timeline
The plant is scheduled to be fully recommissioned and operational by Q2 2022, with connection to Italy's national electric grid already established. COS.M.I. Srl, EQTEC's Italian delivery partner, will serve as the EPC contractor, commencing work once all permissions and equipment are in place.
Equity Options
EQTEC holds a call option to acquire additional equity in the project at a fixed price within the first two years from financial close. Similarly, MetalNRG and other consortium members have a put option to sell their equity to EQTEC at a fixed price during the first two years of operations, ensuring protection of their capital investments.
