Israel-based Ellomay Capital has signed an agreement with Ludan Energy Overseas for the development of waste-to-energy projects in the Netherlands.
Under the deal, Ellomay will acquire at least 51% of each project and Ludan will own the remaining 49%, upon the achievement of certain conditions, including financial close and receipt of subsidy.
The projects are estimated to be worth a total of EUR200m including project financing. Each project is expected to operate for about 12 years.
Ludan will be the engineering, procurement and construction contractor. It will also carry out operation and maintenance.
In addition, Ludan will receive a development fee for each project following financial closing in different amounts depending on the type and size.
Ellomay Capital CEO Ran Fridrich said: "The Netherlands' waste-to-energy market is expected to grow rapidly, as the Dutch government started taking actions to increase the renewable energy usage in order to reduce dependency on traditional fossil fuels.
”As part of this initiative, actions are taken to significantly increase green gas installations in the Netherlands by 2020, which will also assist the Dutch authorities with mitigating the environmental side effects of the growing Dutch milk industry.
“This new opportunity is in line with Ellomay's operating objective to expand its operations in the renewable and clean energy market and exploit attractive investment opportunities."
The deal may be terminated if the parties will not reach an understanding as to the contents of the EPC and O&M contracts within sixty days after the financial closing of the initial project.