A subsidiary of Dutch private equity investment firm Momentum Capital has made a conditional investment of EUR 45 million ($53 million) in the development of a biocoal plant to be built in Vägari, Estonia.
Baltania OÜ’s facility will utilize technology from Clean Electricity Generation BV, which, according to the company, has developed a “proprietary, turn-key, plug-and-play torrefaction system that generates up to 15,000 metric tons of bio coal product per module per year, and simultaneously generates up to 1.1 MWe of green electricity per module.”
A full-scale demonstration plant that utilizes the technology is located in Derby, in central England’s East Midlands, according to CEG.
Baltania OÜ indicated its focus will be on production of biocoal pellets, and that its main customer base will consist of utility companies in the Nordic countries and central Europe. The planned output capacity of the plant will be approximately 160,000 metric tons annually.
The project, to be carried out in cooperation with the Estonian Ministry of the Environment, will be funded by Momentum Capital and other investors and financial institutions, as well as a European Union NER300 grant of EUR 25 million.
Engineering and consulting company Pöyry will carry out a torrefaction project feasibility study on behalf of Baltania OÜ.
Momentum made a similar announcement of plans to invest in a Mikkeli, Finland, plant utilizing CEG’s technology in late 2016, with plans to begin construction in late 2017. Mika Hassinen, asset management director of Momentum Capital, said that plans are moving forward with the Finland plant, though slower than originally planned. “This is due to fact that not all conditions set for the investment have yet been met,” he said. “We anticipate these conditions to be fulfilled during spring 2018.”