Ence completes the sale of its CSP plant in Puertollano

Ence today completed the sale of its 90% stake in the Puertollano CSP plant, agreed on November 20. The closing of the transaction involves the collection of 82.5 million euros and the reduction of debt, assumed by the buyer, for another 81.5 million euros. The collection of up to 4 million euros more is conditional on future actions related to the plant’s electrical connection facilities. The capital gains generated in two years, since Ence made its investment in the plant, amount to 78%.

The Company also plans to complete the incorporation of a minority partner in its Renewable Energy business before the end of the year. The closing of the operation will mean a first collection of 225 million euros, included in the price of up to 359 million euros agreed with the infrastructure fund, Ancala Partners, on November 12, for 49% of the capital in its subsidiary renewable.

Ence wants to be a benchmark in the development of the bioeconomy in Spain and these two operations strengthen its financial position to enhance and diversify its growth in both renewable energy and biomaterials.

Ence is the largest generator of renewable energy with agricultural and forestry biomass in Spain. To boost its growth in renewables, the Company has a project portfolio of 405 MW, ready to be built by the end of 2021 which would mean multiplying its current installed capacity by 2.5 times, thereby contributing to Spain’s ecological transition towards a carbon neutral economy.

Also, Ence has two projects to expand and diversify its cellulose production towards other biomaterials, also coming from sustainable natural fibers and with growing demand, such as cellulose for viscose and absorbent cellulose for hygienic products.

The investment in these two projects, contemplated in its Strategic Plan, is pending that the uncertainty around COVID-19 is cleared and the prices of pulp recover.