TIDMDKL
RNS Number : 2411V
Dekel Agri-Vision PLC
02 December 2019
Dekel Agri-Vision Plc / Index: AIM / Epic: DKL / Sector: Food
Producers
2 December 2019
Dekel Agri-Vision Plc ('Dekel' or the 'Company')
Joint Venture agreement with Green Enesys Holdings Ltd
Highlights
-- Joint Venture agreement ("JV Agreement") with Green Enesys
Holdings Ltd. ('GEG'), an established renewable energy company, to
co-operate in order to develop an initial 35-36MW hybrid power
project ('HCTPP'), potentially in Ayenouan, Côte d'Ivoire
-- First contemplated HCTPP to comprise 30MW solar photovoltaic
('PV') plant and 5-6MW biomass plant
-- Expected to generate cost savings at Dekel's producing palm
oil project in Ayenouan and, via the potential sale of energy to
the grid, add another revenue stream for Dekel
-- JV to be owned 50:50 by Dekel and GEG
-- HCTPPs to be funded and developed via special purpose joint venture vehicles
-- JV provides scope for the roll-out of HCTPPs across Côte
d'Ivoire and other countries in West Africa in line with government
initiatives to increase clean energy generation
o Cote d'Ivoire is aiming to produce at least 42% of its power
from renewable energy sources by 2030 and within this target 400 MW
of generating capacity via solar by the end of the next decade
Dekel, the West African focused agriculture company, is pleased
to announce it has signed a JV Agreement with GEG, a European
renewable energy company with offices in Switzerland, Germany,
Cyprus and Italy, to seek to develop HCTPPs in Côte d'Ivoire. The
development of HCTPPs is in line with Dekel's strategy to further
reduce costs at its vertically integrated palm oil operation at
Ayenouan, and also to scale up and diversify its revenue and asset
base.
GEG, which has developed renewable energy projects all over the
world, with a track record of developing over 490MW of solar PV
projects. The company has ongoing project development activities in
Europe, Latin America and Africa, and is currently undertaking a
feasibility study to construct an initial HCTPP in Côte d'Ivoire.
It is envisaged the HCTPP project will comprise a 30MW solar PV
plant and a 5-6MW biomass plant using feedstock from Dekel's
Ayenouan project, specifically empty fruit bunches from the
mill.
Under the terms of the JV, special purpose vehicles ('SPV') will
be established through which the required rights, permits and
contracts will be obtained for the construction, connection and
operation of HCTPPs in Côte d'Ivoire. These include power purchase
agreements granted by and executed with the relevant authorities
and/or entities; operational licences; land lease agreements; and
long-term financing for the construction, connection and operation
of the plants under a project finance scheme such that there is no
requirement for Dekel, or its shareholders, to fund these projects.
Dekel and GEG shall use commercially reasonable endeavours to
assist the SPV in procuring these matters.
The proposed HCTPPs will be solar PV plants combined with
biomass or heat recovery or any other renewable energy sources,
including storage. GEG is to prepare the technical studies which
are required to be submitted to the Minister of Energy as part of
the permit application process and will also be responsible for the
preparation of the financial model for each HCTPP. Dekel will
assist GEG in this work and will in particular:
-- locate the relevant property and land for the construction of HCTPPs;
-- support GEG in preparing the environmental and social studies
covering the land where the plants are to be constructed;
-- support GEG in obtaining the permits and licences necessary
for the construction of HCTPPs; and
-- supply the plant with available biomass materials from its Ayenouan project.
Each of Dekel and GEG have a right of first refusal to
participate in any green energy and complementary projects in Cote
d'Ivoire and other countries in West Africa, to which the other
party is exposed to or contemplating development.
Discussions with the Government to obtain the relevant power
licence have commenced and a key next step will be to submit the
permit application. Following the grant of the relevant permit,
Dekel and GEG will look to secure the required project finance.
There can be no guarantees that such licence or funding will be
obtained but the Company will make further announcements as
appropriate in due course.
Dekel Executive Director Lincoln Moore said, "The JV with GEG is
in line with our strategy to build Dekel into a leading
agro-industrial company focused on West Africa with a portfolio of
projects generating diversified revenue streams. Renewable energy
sits well with the collaborative business model we have deployed at
Ayenouan and are deploying at the Tiebissou cashew processing
project, which is currently under development. By identifying a
shortfall in processing capacity and building a state-of-the-art
plant to process local produce, our model places local smallholders
at the centre of operations. Sourcing our own energy requirements
from renewable sources and taking part in government clean energy
initiatives, not only makes commercial sense, but also goes hand in
hand with the active role we play in the communities with whom we
work with."
About Green Enesys Group
Since its formation in 2009, Green Enesys has developed over 490
MW of Solar PV projects in Europe, Africa and North & South
America. Green Enesys is involved in all stages of the renewable
energy project lifecycle, from project development to electricity
generation and asset management.
** ENDS **
For further information please visit the Company's website
www.dekelagrivision.com or contact:
Dekel Agri-Vision Plc
Youval Rasin
Shai Kol
Lincoln Moore +44 (0) 207 236 1177
Cantor Fitzgerald Europe (Nomad and
Joint Broker)
David Foreman +44 (0) 207 894 7000
Optiva Securities Limited (Joint Broker)
Christian Dennis
Jeremy King +44 (0) 203 137 1903
St Brides Partners Ltd (Investor Relations)
Frank Buhagiar
Cosima Akerman +44 (0) 207 236 1177
Notes:
Dekel Agri-Vision Plc is a multi-project, multi-commodity
agricultural company focused on West Africa. It has a portfolio of
projects in Cote d'Ivoire at various stages of development: a fully
operational palm oil project in Ayenouan where fruit produced by
local smallholders is processed at the Company's 70,000tpa crude
palm oil mill; a cashew processing project in Tiebissou, which is
due to commence production in 2020; and a second palm oil project
in Guitry which is under development.
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END
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