RE: Prolific basins17 Mar 2022 17:50
Last Operations Update was 2nd Feb, so next is due May
RNS Number : 3776A
Scirocco Energy PLC
02 February 2022
2 February 2022
Scirocco Energy plc
("Scirocco Energy" or "the Company")
Operations Update
Scirocco Energy (AIM: SCIR), the AIM investing company targeting attractive assets within the European sustainable energy and circular economy markets is pleased to provide the following update on its operations:
EAG Joint Venture
The Company recently supported Energy Acquisitions Group Ltd ("EAG"), the specialist acquisition and operating vehicle in the sustainable energy sector, to acquire its first cash generative anaerobic digestion asset, Greenan Generation Limited ("GGL"), in which Scirocco Energy holds a 50% interest:
Financial
In Q4 2021 the revenue received for the quarter by GGL totalled £300,352 (unaudited) supported by high power prices through the period. This compares to the same period in 2020 where revenue was £232,968 (unaudited). At current power price levels EBITDA for the first 12 months of EAG ownership is estimated to exceed £600,000 rather than the £470,000 guidance previously issued.
Operational
Q4 2021 was the first complete quarter of EAG's ownership of GGL. During the quarter the following upgrades were initiated to ensure biological, mechanical, and financial stability going forward.
· Engagement and retention of a consultant biologist to commence a medium-term biological analysis of the plant to support optimisation of feedstock and process.
· A number of equipment upgrades including the installation of an automated radar system to remove the requirement for operator intervention on digester recirculation and level monitoring.
· Extended equipment support contracts and upgraded control software systems to ensure operational efficiency and mechanical stability.
· Recalibration and replacement of gas monitoring and treatment equipment to ensure accurate recording of methane and associated gas values.
· Replaced a number of the mixers due to normal wear and tear experienced over the plant's six-year operational life. This will ensure good mixing and support optimal operational performance going forward.
Furthermore, the EAG team is currently reviewing options for a feedstock optimisation programme.
Business Development
From a business development perspective, EAG is currently carrying out due diligence on two additional AD plants. Under the arrangement with SEM (announced by Scirocco in an RNS dated 9 December 2021) the Company and EAG gained exclusive access to a technical solution for the processing of digestate into a nutrient dense organic fertiliser. The EAG team is engaged in discussions regarding two merchant installations of the SEM equipment on third party AD plants.
Tom Reynolds, Scirocco Energy CEO commented "We are delighted to see excellent operational performance supported by the current high wholesale power prices. EAG's experienced team have
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