Israeli company Ellomay Capital has signed an agreement with Ludan Engineering to develop €200m ($220m) waste-to-energy projects in Netherlands.
As part of the deal, Ellomay will acquire at least 51% interest in each project while Ludan will hold the remaining 49% stake.
The deals are subject to the fulfillment of certain conditions, including projects reaching financial close and receiving subsidy from the Dutch authorities.
The overall cost of the projects is estimated to be approximately €200m.
Ludan, which currently owns certain rights in a few biogas plants through its affiliates, will be responsible for engineering, procurement and construction contractor and carry out operation and maintenance for the bio gas projects.
Besides, Ludan will be entitled to receive a development fee for each project following financial closing in different amounts depending on the projects' type and size.
Each project is expected to have an operational period of approximately twelve years.
Ellomay 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.”
The deal is part of Ellomay's efforts to boost its operations in the renewable and clean energy market while exploiting investment opportunities.