Stallingborough, UK [RenewableEnergyWorld.com] Helius Energy Plc has announced the sale of its Stallingborough biomass-to-energy project to RWE Innogy UK, a wholly owned subsidiary of RWE AG. Under the terms of the agreement, RWE Innogy will acquire Helius Energy Alpha Ltd., which owns the rights for the development and operation of the 73-megawatt (MW) plant in Northeast Lincolnshire. The total amount payable according to the the transaction documents is £28.14 million [US $50.73 million]
Of this, £22.5 million [US $40.56 million] is payable immediately on completion and a £1.4 million [US $2.52 million] retention is payable 12 months following completion. A future amount of £240,000 [US $433,000] pursuant to an acquisition of land agreement is also payable. RWE said that it expects that the profits on disposal will be approximately £20 million [US $36.08 million].
In addition, Helius Energy will receive 13% of the yearly profit after tax over the first 24 years of operation. This will provide the company with an ongoing revenue stream and the opportunity to benefit from future improvements in performance and market conditions, Helius said.
“I am delighted that Helius Energy has achieved exactly what it set out to do when it listed last year. This deal provides us with the funds to continue our strong and steady progress towards the development of a pipeline of biomass energy projects, as well as an ongoing revenue stream. We look forward to working with RWE Innogy and exploring ways to exploit the obvious synergies between our respective organizations in the future,” said John Seed, managing director of Helius Energy.