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The project will finance the construction and/or optimisation including RDI costs of up to five plants for thermo-chemical conversion of biomass to produce renewable biogas in countries eligible under InvestEU.
The project aims to decarbonise energy-intensive industries, such as furniture, non-ferrous metals and paper by replacing fossil gas with renewable biogas. Furthermore, by producing biochar as by-product, the project will improve soil health, reduce atmospheric carbon, and thus achieve negative emissions.
The project is in line with the InvestEU objectives of energy, environment and sustainable bioeconomy. The positive externalities of using renewable bio-syngas instead of fossil gas are not fully internalised in carbon prices, which leads to a market failure. The project upscales a unique, patented biomass gasification technology which can handle sawdust, engineered wood waste, chips and pellets and biomass residues for cost-effective, decentralised energy production at an industrial scale. The project can thus support the shift to a fossil-free manufacturing industry in various high emitting sectors.
The proposed financing takes the form of a quasi-equity investment, providing the promoter with the capital flexibility needed to scale its technology and reach commercial and financial maturity. This financing also enhances the borrower's capital structure by diversifying funding sources and offering a longer bullet-equivalent tenor and a more flexible availability period than what is typically available in the market. The risk level of this operation exceeds what the EIB could assume using its own resources. Therefore, the operation relies on the strong EU First Loss Piece support provided under the Green Transition Thematic product, without which it would not be feasible.
Final beneficiaries will be requested to comply with applicable national and EU legislation, as appropriate.
Final beneficiaries will be requested to comply with applicable national and EU legislation, as appropriate.