ENCE starts construction of the biomass plant in Puertollano


Sala de mandos




25 April 2018.- After the agreement reached about a year ago with Elcogás for the purchase of the site of its GICC plant in Puertollano (Ciudad Real), and the environmental and administrative steps necessary to set up a biomass plant, Ence-Energy & Pulp has reached an agreement for the purchase of the rights for the installation of a 50 MW biomass power generation plant at that site. Also, ENCE has signed a contract with SENER for the turnkey construction of the plant.

The study and development of the project has been worked on in great detail for one year in order to obtain all necessary permits and authorizations, and to guarantee that the plant is energy-wise optimally located and with the best engineering and construction quality, together with a competitive and stable biomass supply.

We must emphasize the support of Endesa ─one of the main shareholders of Elcogás─ for the project since its inception, and its commitment to contribute to the economic development of Puertollano, the creation of employment in the area, and the use of important local natural resources.

In the surroundings of the future Puertollano Plant there is abundant biomass and also the possibility of having a stable supply of fuel at a competitive cost. The plant will mainly use vine shoots and olive waste, as well as local forest residues, all of which will contribute to the sustainable use of these renewable resources and be an important generation of rural employment.

The signed construction contract will provide the plant with the most advanced technologies to guarantee optimum environmental performance. ENCE plans an investment of up to  € 115 million and it is estimated that it will contribute an annual EBITDA of € 13 million. The commercial operation is scheduled for the second half of 2019 and will thus join the biomass plant that ENCE is currently building in Huelva.

The expected joint EBITDA of these two new operations will exceed € 24 million annually, with which ENCE will achieve an estimated EBITDA of € 84 million/year in its independent energy business in 2020, exceeding the objective set out in its 2016-2020 Strategic Plan of reaching an EBITDA of € 78 million.