Albioma, EDF ink supply deal for 40-MW biomass project in Martinique

Dec 15, 2014 - French power producer Albioma SA (EPA:ABIO) said on Monday it has sealed a supply contract with local utility Electricite de France SA (EPA:EDF) for the 40-MW all-biomass plant to be built in overseas France.

The 30-year deal, representing a contract amendment that covers bagasse/biomass prices, was signed on December 5 following an approval by the country’s Energy Regulation Commission.

The EUR-170-million (USD 211m) Galion 2 plant is being built in France’s overseas region of Martinique by a 80/20 joint venture between Albioma and COFEPP. It will help the island reduce its reliance on imported fossil energy and will cover some 15% of its demand.

The all-biomass plant will be burning bagasse produced by the nearby Galion sugar refinery. In addition, it will develop processes for the use of locally-available biomass like sugar cane straw, the unrecovered portion of distillery bagasse, coppiced wood amongst other. About 40% of the power station’s fuel supply will come from local biomass, while the rest would comprise wood pellets imported from North America and Brazil.

The owners have secured EUR 120 million in long-term project debt for the facility, which is expected to start operations in the first half of 2017.

(EUR 1.0 = USD 1.243)

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