Release date: 1 August 2022
Promoter – Financial Intermediary
JORGE PORK MEAT SLULocation
Description
The project relates to the financing of the promoter's research, development and innovation (RDI) activities and related CAPEX between 2021 and 2025 in order to develop and confirm new technologies for sustainable rearing and deploy green energy sources for self-consumption in Spain.
Additionality and Impact
The operation will finance the Promoter's investments in: a) RDI activities linked to the enhancement of sustainability in farm operations, b) digitalization, and c) decarbonisation.
The project is strongly aligned with EU Green Deal and EIB policy priorities, namely on the minimisation of the environmental and carbon footprint of pork production and relevant agro-industries, and consistent with the Paris agreements. The project is complementary to EU rural development policy and the renewable energy generation.
The RDI activities financed are expected to generate positive knowledge, technology, climate and environmental externalities. This is to be achieved through the promotion of innovative processes and through skills development. The Promoter's RDI programme targets higher resource efficiency, smaller environmental footprint improvement and safer products adapted to the consumer preferences, but not internalized on the consumer product market.
The project addresses the market failures associated with climate change and environmental sustainability - namely the greenhouse-gas (GHG) and the pollution externalities - by identifying, developing, and validating low-carbon and clean technologies. It also counters the market failures of RDI positive knowledge externalities and from limited access and/or higher cost of financing as a result of factors such as information asymmetries (linked to the inherent uncertainty of RDI activities, and leading to higher screening and monitoring costs), and misalignment of incentives.
The EIB, alongside the EU policy incentives, will support the promoter in re-orienting its business activities towards the development and implementation of more sustainable technology for farming. The RDI component will create knowledge allowing the promoter to overcome limitations related to the access to and dissemination of new technologies, such as high transaction costs for obtaining information, negotiating and acquiring protected technologies. The project shows good prospects for growth and social benefits, as well as fair employment indicators.
The proposed loan complements other external funding and internal sources and strengthens the company's capital structure by providing favorable terms (availability and grace periods and flexibility on drawdowns), as well as a long maturity. Moreover, the EIB will become a stable financier assuming a long-term commitment with the promoter, sending a positive signal towards the company's current and potential new financing partners. EIB's structuring expertise has contributed to confirm the Project's alignment with the Paris agreements.
Objectives
The proposed investment therefore targets the research, development and testing of components and systems as well as the revamping and first-of-its-kind facilities of pork rearing farms targeting improved animal welfare, zero emissions, no slurry, and no antibiotics. This target is in line with the reduction of the two main emission sources of the pig supply chain: indirect feed emissions and manure emission.
Sector(s)
- Agriculture, fisheries, forestry - Agriculture, forestry and fishing
- Energy - Electricity, gas, steam and air conditioning supply
Proposed EIB finance (Approximate amount)
EUR 40 million
Total cost (Approximate amount)
EUR 86 million
Environmental aspects
The operation concerns support to the implementation of research and development technologies aimed at developing sustainable rearing with the construction and renovation of rearing facilities, biogas and composting unit, water storage, and photovoltaic field for self-consumption. Part of the project's investments fall under Annex I and II of Environmental Impact Assessment (EIA) Directive 2011/92/EU amended by Directive 2014/52/EC. The requirements, in respect to EU and national legislation, including permitting and public consultations, are strictly followed by the promoter. The Promoter applies strict animal welfare, hygiene and safety protocols, and integrated environmental and quality management systems that meet official EU and Spanish standards and conform to Best Available Techniques.
Procurement
The Promoter has been assessed by the EIB as being a private company not subject to EU rules on public procurement or concessions.
Status
Signed - 7/07/2022
Disclaimer
Before financing approval by the Board of Directors, and before loan signature, projects are under appraisal and negotiation. The information and data provided on this page are therefore indicative.
They are provided for transparency purposes only and cannot be considered to represent official EIB policy (see also the Explanatory notes).