Asiagreed.info

Description:

The proposed project concerns the construction and operation of a 25 MW landfill gas (LFG) project located in China. The project will generate and supply electricity to the grid.

The project is located at an existing landfill, and one 5 MW engine has been installed and the LFG venting infrastructure is in place. Planned construction of additional capacity includes three 5MW engines for an immediate capacity increase, and one 5MW engine addition in around 2 years to make full use of available LFG will occur once financing is secured.

The project has successfully implemented its 1^st phase and the additional capacity is expected to be equally successful. The gas turbines are all 5MW Jenbacher Austrian LFG engines (the engines are to be supplied by GE under the Austrian designed ‘Jenbacher’ line), which are of high quality and reliability.

This project has an attractive expected IRR of around 26% (after taxes). In addition, this project has the strong environmental advantages of being a clean energy project.

The project developer is seeking investors to take over the project and install additional capacity. Investment would be into an established SPV.

Timing:

The project is partly operational already. Construction of additional capacity can be initiated once financing has been secured. The project has a projected lifetime of 21 years.

Key Financial Parameters:

Proposed Financial Structure:

This project is available for outright sale, with a 100% ownership stake.

The existing project and infrastructure are available for an investment of 35 million RMB. An additional 18 million RMB is required for the immediate installation of three 5MW engines, and an additional 6 million RMB will be required later in the project lifetime for an additional 5MW engine.

The financial structure is open to negotiation. Additionally, the investor is free to decide on any debt / equity ratio he prefers in order to fill the investment amount.

The financing structure may be subject to requirements from the Chinese government, depending on the legal status of the investor. More details and a tailored investment proposal can be discussed.