Innogy : sells German biomass CHP plant and pellet production facility to Cycleenergy

The biomass thermal power plant (CHP) and the pellet production facility in Erndtebrück (Germany) have been taken over by a new owner: innogy SE and Cycleenergy Holding GmbH (Cycleenergy) signed a sales and purchase agreement end of December. The agreement lays out the transfer of the biomass CHP plant as well as the pellet plant operated by innogy's subsidiary NRW Pellets GmbH to the Austria-based company Cycleenergy. The transfer of ownership as well as the transfer of the employees working at both plants took place on 27 January 2020. Both parties have agreed to maintain confidentiality regarding the purchase price.

'The dedicated team in Erndtebrück has managed in the past few years to create a good basis on which to secure an important contribution towards the necessary transformation of the European energy industry into a sustainable one', says Christoph Bruckner, Head of Operations and Technology at Cycleenergy, about the company's takeover of the two plants at the Erndtebrück location.

Cycleenergy operates three biomass power plants and two pellet production facilities in Austria and plans, finances and builds decentralised, base-load capable energy solutions in Austria and its neighbouring countries.

Sandra Silva Riaño, Head of Biomass Germany at innogy SE and Managing Director of NRW Pellets GmbH: 'I'm happy to be passing our two plants into competent hands. In taking this step, we have secured the long-term operation of both plants and the jobs. This is an important signal to send out to the region and our customers - and moreover, to our employees there. I'd like to take this opportunity to express my sincere thanks to them. Their great dedication is what has enabled us to continuously improve production processes at both plants in recent years and position ourselves on the market as a reliable and quality-focused pellet manufacturer. We have now created a solid basis for the future under the umbrella of Cycleenergy.'

The two plants at the Siegen-Wittgenstein location have been sold as a consequence of a strategic realignment process that was decided upon some time ago and which no longer counts biomass as a strategic growth area of innogy SE. As part of this process, the biomass plants in Kehl and Goch (both located in Germany) as well as Enna (located in Italy) have already been sold.