React Energy secures loan, announces technology provider

By Erin Voegele | January 14, 2016

On Jan. 8, U.K.-based React Energy plc announced it has secured a €750,000 ($815,625) loan facility from EBIOSS Energy AD. The company will use the proceeds from the facility for the continued investment in its portfolio of U.K. biomass gasification projects.

React Energy also announced it has granted EQTEC Iberia, a subsidiary of EBIOSS, exclusivity to provide gasification technology as part of engineering, procurement and construction (EPC) contracts for its biomass gasification project pipeline in the U.K.

On Dec. 31, React Energy, announced its 50.01 percent subsidiary Newry Biomass Ltd., which owns Newry, Northern Ireland-based gasification project, had entered an agreement with EBIOSS to purchase its EQTEC integrated biomass gasification power plant. The plant has a capacity of 4 MW and will be used in the repowering of the Newry project. The total cost of repowering the Newry biomass project, including the gasification equipment to be purchased from EBIOSS, is estimated to be £8 million ($11.53 million).

Information released by React Energy indicates the 4 MW Newry project is a joint venture with Farm Business Development plc, React Energy’s 23.2 percent shareholder.

Planning permission for the waste-to-energy project, which processes 25,000 metric tons of wood per year, was secured in 2009. Due to underperformance of the original gasification technology, React Energy is repowering the project with a new technology provider. The upgrade is expected to increase capacity from 1 MW to 4 MW. While the project was operational and did export power the grid, it was idled in September 2014 pending additional funding to engage a new technology provider.