Enefit Green gets rid of Latvian cogeneration plant for EUR 32m

Estonian renewables developer Enefit Green AS (TAL:EGR1T) has signed a deal to sell a biomass-fired cogeneration plant and a pellet factory in Latvia in order to focus more on its strategic business direction of increasing its wind and solar capacity.

Under the terms of the deal, Enefit Green is selling the facilities in Broceni to Warmeston for EUR 32 million (USD 35.4m) on a cash- and debt-free basis.

The divested business has been in operation since 2016 and currently employs 39 people. It sells its electrical output to the Latvian electricity grid and uses the generated heat to dry raw materials in the adjacent pellet factory, which, in turn, sells pellets to energy companies, wholesale distributors and retail clients.

"Increasing the share of wind and solar energy in the Baltic States and Poland is the focus of Enefit Green. Currently, we have six wind parks under construction in Finland, Estonia, and Lithuania, as well as four solar power plants in Estonia, Latvia, and Poland with a total capacity of 715 MW. The sale of biomass-based cogeneration businesses allows us to focus more on our strategic business direction," said Innar Kaasik, Member of the Management Board and Production Manager of Enefit Green.

(EUR 1.0 = USD 1.107)

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