Ambienta I invests in Italiana Pellets

The Ambienta Sgr fund will acquire 80% of the company that produces pellet a solid biofuel used to generate energy and heat. A memorandum of understanding was also signed with Energy Pellets to seek possible synergies with Italiana Pellets and create the Italian leader in the sector. Between investment in equity and project financing, the value of the deal is about € 36 million.

 

Milan, 8 August ‐ Ambienta Sgr, the principal Italian initiative for investing in the environmental sector, has finalized an agreement for the Ambienta I fund to invest, through a newly‐formed vehicle Ambienta I Biomasse Srl, in Italiana Pellets Spa, one of Italy’s leading producers of pellet, a solid biofuel consisting of dried, compressed wood biomass used to produce energy or heat. The total investment of € 5.4 million will be achieved through subscription of a capital increase and will leave Ambienta I Biomasse with an 80% stake in the company.

BIIS (Banca Infrastutture Innovazione e Sviluppo S.p.A.) of the ISP Group will fund Italiana Pellets through a project finance contract valued about € 31 million. The loan will enable Italiana Pellets, founded by entrepreneur Ercole Cacciami (who will own 20% of the post‐increase capital), to build a plant in Pavia province that will produce 120,000 tons/year of pellets beginning in September 2009. Since the production process will require heavy use of energy, the primary production will include a cogeneration unit fed by solid biomass with power of 3 MWe [electrical] and 6 MWt [thermal]. The Pavia plant will enable Italiana Pellets to consolidate its Italian leadership in its sector and become one of the principal European players.

Ercole Cacciami has been appointed chairman of Italians Pellets, while Ambienta has already selected a manager forthe post of general manager. The investment in Italiana Pellets is part of the Ambienta Sgr’s plan to develop in the area of production of power and heat from biomasses. The activity in this sector will be conducted by Ambienta I Biomasse, which will receive the investment in Italiana Pellets and in other solid biomass companies.

This scheme includes a memorandum of understanding signed by Ambienta I Biomasse with Energy Pellets, company owned by Veneto‐based entrepreneur Giancarlo Zacchello, with HQ in Riese Pio X (TV) and already operating with three plants, one in Croatia and two in Italy (Mantua and Treviso) with total production of over 150,000 tons/year. The objective is to seek possible synergies with Italiana Pellets and create the Italian leader in the sector and one of the top three in Europe, thanks to the production capacity of the two companies (estimated to be over 300,000 tons/year).

Ambienta Sgr, authorized by the Bank of Italy on 5 November 2007, is the most important Italian initiative for investment in the environmental sector. The selection of the investments and their management are assigned to a management team composed of Nino Tronchetti Provera, Jonathan Gibson, Rolando Polli, Guido Rivolta, and Mauro Roversi.

The management company is owned 70% by the management team, 20% by the Intesa Sanpaolo group and the remaining 10% by a group of leading Italian entrepreneurs who have invested in the project through their industrial groups or as private individuals. Ambienta Sgr, through the Ambienta I fund, has already gathered subscriptions for over € 150 million and estimates that the fund will close with the raising of € 250 million.