LONDON (Alliance News) - Renewable power company REACT Energy PLC on Thursday said Newry Biomass Ltd, of which it owns slightly more than half, has entered into a deal with Spain-based EBIOSS Energy AD to buy its EQTEC Integrated Biomass Gasification Plant.
Newry will use the plant, which has a power output of 4 megawatts, to repower the Newry Biomass gasification project in Northern Ireland.
The total cost of re-powering the Newry project, including the gasification equipment to be acquired from EBIOSS, will be around GBP8.0 million, REACT said. The purchase of the equipment from EBIOSS will be EUR5.0 million, to be paid in cash.
REACT Energy owns a 50.01% stake in Newry Biomass, a joint venture with Farmer Business Development PLC, which owns a 23% stake in REACT.
The new equipment has been acquired after the underperformance of the original gasification technology. Shares in REACT were untraded on Thursday, having last traded at 2.10 pence.
By Sam Unsted; samunsted@alliancenews.com; @SamUAtAlliance
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