SDCL Energy Efficiency Income Trust (SEEIT) is investing €22m to buy an 80% stake in an operational biomass project in Portugal from Capwatt for €22m.
The London-listed energy efficiency project investor said it has has agreed to acquire the equity interest in Sociedade de Iniciativa e Aproveitamentos Florestais – Energia (SIAF) projet in Mangualde.
The SIAF project generates heat and power from sustainably sourced biomass. The project contracts operation and maintenance activities to Capwatt, which will retain a 20% equity interest in the project.
In addition to the acquisition of SIAF, SEEIT and Capwatt have agreed to focus on the joint development and acquisition of energy efficiency projects across Iberia.
Oliva Spanish cogeneration assets
SEEIT has also invested €12m to acquire the interest of a minority shareholder of the Puente Genil projects in Oliva Spanish Cogeneration for €12m.
The acquisition follows SEEIT’s original investment in the 125MW cogeneration portfolio in September 2019.
SEEIT now has sole ownership of eight of the nine projects, with an offtaker retaining a minority interest in the other.
Jonathan Maxwell, CEO and founder of Sustainable Development Capital, the SEEIT’s investment manager, said: “SIAF is SEEIT’s first investment in Portugal and demonstrates our commitment to growing our presence in Iberia and supporting our ambition for increasing geographic diversification.
“Similar to our investment in Oliva Spanish Cogeneration, the SIAF investment provides critical onsite heat generated from waste sources. Both these investments are great examples of the circular economy at work, whilst contributing to meeting SEEIT’s yield and returns targets.”
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