2×15 MW Biomass Power Generation Project
Description:
The proposed project concerns the construction and operation of a 2×15 MW Greenfield biomassfired power generation facility in the southwest of
The project involves the generation of electricity by burning previously unutilized biomass collected abundantly available in the surrounding area. The annual amount of electricity provided to the grid is approximately 158,000 MWh. The boilers will be produced and supplied by a leading boiler manufacturer in
Important studies such as the FSR and EIA are completed and the project has been approved by the government. Construction will commence once the financing is secured and the expected commissioning date will follow a year after.
Besides the proposed project, the project developer has a large and interesting biomass project portfolio including several additional investment opportunities that can be discussed.
The equity IRR after tax, calculated over the total equity and including CDM revenues is around 26%.
The project IRR after tax including CDM revenues is approximately 15%. CER revenues are estimated based on 142,369 CERs annually at a CER price of 9EUR/tCO2e and an exchange rate of 9.1 CNY/€ The project developer is looking for an investor to invest around 56 million RMB in this 215 million RMB project. Investment is in a newly formed SPV.
Timing:
Construction will commence once the financing is secured and the expected commissioning date will follow 18 months after.
Key Financial Parameters:
|
Total investment (RMB) |
206,630,000 |
|
Project IRR (Including CDM, after tax) |
15% |
|
Equity IRR (over total equity, including CDM after taxes) |
26% |
|
Pay Back Period (yrs) including 18 months construction |
around 7.5 |
|
Non-Convertible Debt provided by investor (RMB) |
10,800,000 |
|
Subordinated Convertible Debt provided by investor (RMB) |
26,500,000 |
|
Equity provided by investor (RMB) |
18,600,000 |
Proposed Financial Structure:
The following proposed financial structure is subject to further negotiation:
- 65% Chinese Bank debt (10 years, 7% annual interest)
- 5% Non-convertible debt provided by investor (10 years, 8% annual interest rate)
- 12.35% Subordinated convertible debt provided by investor (10 years, 8% annual interest rate)
- 17.65% Equity, of which 51% held by the project developer, and 49% held by the investor
The proposed financial structure includes the option to enhance the return by converting the subordinated convertible debt to equity.
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.
Is this project still relevant?, we can offer Gasification & Combustion
engines and save a lot by that.
If interesting, write asap.
SYRUTEC INT. GROUP