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Cycleenergy doubles capacity with further acquisition

Cycleenergy Beteiligungs- und Management AG, one of the fastest growing biomass power plant developer and operator in Austria doubled its capacity after securing successfully €10 million of equity funds in the third quarter last year with the Portuguese Infrastructure Funds NEF.

Cycleenergy implemented the acquisition of Bioenergie Gaishorn GmbH in the last days of 2009. The Gaishorn biomass power plant is one of the largest power plants in Styria. It provides approximately 25,000 households with electricity indirectly and has a capacity of 21 Megawatt. The main part of the heat, which is a by-product of the electricity production, is sold to local purchaser – particularly Mayr Melnhof – and the rest heat is used to produce 20,000 tons of pellets per annum.

“The Gaishorn acquisition is another important milestone in the success story of our company, which also secures us to enter the pellet market,” said Karl Gruber, technical director of power plant operations. “The technical status of the power plant and the pellets production meets our high standards, so the efficiency of the plant only needs to be improve in small partitions. Nevertheless we plan to raise the pellet production from 20,000 tons to 40,000 tons annually.”

“The Gaishorn takeover will not be the last acquisition this year,” stated Florian Dietz, CEO and co-founder of Cycleenergy. “We will purchase two more operational assets in the next month.” Therewith the number of biomass power plants run by Cycleenergy will rise from four at present to six. “Our project pipeline is well filled and we will increase our equity value from currently €20 million to €35 million in 2010,” said Dietz.

Cycleenergy was founded by the Corporate Finance Boutique Ventacc in 2006 and operates biomass combined heat and power plants based on state guaranteed fixed feed in tariffs and long term heat supply contracts. In 2007 and 2009 international private equity funds invested in Cycleenergy. Cycleenergy made a turnover of €15 million in 2009. (BBJ Online)