Italy’s biggest renewable energy company, Enel Green Power (EGP), has agreed to buy a 15 percent stake in Italian agro-industrial company Terrae as it aims to expand in biomass power generation, the companies said.
Under the deal, EGP will get direct access to the agro-industrial supply chain with significant synergies for biomass supply and to the know-how applied to biomass crops, EGP and Terrae said in a joint statement on Thursday.
The companies did not disclose the value of the deal but said they plan to focus on projects to generate power from biomass with the possibility of developing other projects to use beets and sugar in agro-industry, food business and agro-energy.
EGP will get a controlling stake in a special-purpose company to be formed for specific industrial initiatives with capacity exceeding one megawatt, while the deal also foresees a sale of the remaining shares in unlisted Terrae to institutional investors, including financial partners, they said.
Capacity growth helped EGP, controlled by Italy’s biggest utility Enel raise core earnings by 7.7 percent in 2010.