CEFC finances expansion of low emissions generators
30 July 2013
The Clean Energy Finance Corporation (CEFC) is providing $75 million to Energy Developments Limited (EDL) for investment in new projects generating energy from waste coal mine gas and landfill gas as well as remote hybrid renewables projects.
An international energy provider based in Queensland, EDL specialises in systems to capture waste coal mine gas and landfill gas and turn it into electricity.
CEFC CEO Oliver Yates said that CEFC finance for this facility to enable EDL's waste-to-energy projects was an important demonstration of CEFC's unique role and of the way it was positively impacting across diverse economic sectors.
"Fugitive emissions from coal mines and landfill are potent greenhouse gases and using them to generate electricity that would otherwise come from higher emissions sources creates environmental and economic efficiency benefits," he added.
EDL has already obtained finance of $445 million under a syndicated loan facility provided by banks including Babson Capital Australia, Bank of America, ING, Investec, Macquarie, NAB and UBS.
EDL Managing Director, Greg Pritchard said, "This additional finance on top of our bank loan facility means we can make faster progress on projects that take damaging greenhouse gases out of the atmosphere. The loan from CEFC will enable the faster implementation of new projects by EDL."
CEFC's finance facility will be used for projects that make beneficial use of what would otherwise be waste gases from coal mining and land fill, converting this to electricity. Waste coal mine gas is a reliable source of base-load power that can be used to substitute for coal-fired power.
CEFC's finance facility is also intended for use in funding remote generation solutions involving hybrid technologies that use renewable energy sources. This may involve co-funding with ARENA as these technologies are not yet commercial, but offer significant potential for low carbon energy solutions for remote communities and mining companies.
Individual projects to be funded under the facility will meet CEFC clean technologies investment criteria.
CEFC's loan is on commercial terms that are consistent with EDL's syndicated loan facility.
EDL has a strong track record of landfill gas, waste coal mine gas and mine vent air methane capture and power generation in Australia and around the world. It is also the largest independent provider of remote energy in Australia for projects up to 100 MW.
"The potential to help Australia achieve its targets for reduction in greenhouse gas emissions using this technology to abate waste methane from mining and landfills is significant," said Mr Pritchard.
Energy Developments Limited (EDL), based in Queensland, is an international provider of safe, clean, low greenhouse gas (GHG) emissions energy and remote area energy solutions. It is one of Australia's largest, clean-energy companies listed on the Australian Securities Exchange with Pacific Equity Partners its majority shareholder.
EDL currently owns and operates a diversified international portfolio of 76 power stations in Australia, the United States and Europe with a total capacity of over 741 megawatts from a range of fuel sources:
- Landfill gas power generation and abatement;
- Waste coal mine gas power generation and abatement;
- Remote energy; and
- Liquefied natural gas and compressed natural gas energy solutions.
In the year ended 30 June 2013 EDL's worldwide operations produced approximately 3.5 million MWh of energy, enough to power over 550,000 homes; and, EDL's landfill gas power stations around the world, and waste coal mine power stations in Australia abated and avoided approximately 11 million tonnes of carbon dioxide equivalent of GHG emissions, equivalent to removing 3 million cars from the road.
Updated October 2015: In a statement to the Australian Stock Exchange, DUET Group announced the successful completion of the acquisition of Energy Developments Limited (EDL). As a result of the acquisition, EDL repaid $75 million in CEFC finance.
Media release, 2013