Estonian renewables developer Enefit Green AS has finalized a deal to divest a biomass-fired cogeneration plant and a pellet factory in Broceni, Latvia, for EUR 32 million (USD 35.4 million) in a cash- and debt-free transaction. The move is aligned with Enefit Green's strategic business direction, emphasizing the expansion of its wind and solar capacity.
The divested facilities, operational since 2016, consist of a biomass-fired cogeneration plant and an adjacent pellet factory. The cogeneration plant sells its electrical output to the Latvian electricity grid and utilizes the generated heat for drying raw materials in the pellet factory. The pellet factory, in turn, supplies pellets to energy companies, wholesale distributors, and retail clients.
Innar Kaasik, Member of the Management Board and Production Manager of Enefit Green, highlighted the company's commitment to increasing the share of wind and solar energy in the Baltic States and Poland.
Enefit Green is actively pursuing this strategic objective, evidenced by ongoing construction projects, including six wind parks in Finland, Estonia, and Lithuania, as well as four solar power plants in Estonia, Latvia, and Poland, collectively boasting a total capacity of 715 MW.
The sale of the biomass-based cogeneration businesses enables Enefit Green to concentrate more on its core strategic direction of enhancing wind and solar energy infrastructure in key markets. The divestment aligns with the company's broader vision for sustainable and diversified energy solutions.
