Neoen divests 15 MW Commentry cogeneration unit and its biomass procurement subsidiary

Neoen has announced the sale to Coriance of its Commentry cogeneration unit and its biomass procurement subsidiary for a total amount of EUR37 million (US$40 million) in cash (including US$29.6 million for Neoen, the power plant’s majority shareholder), and its exit from the biomass segment.

The business came with the portfolio of projects Neoen acquired from Poweo EnR in 2012. Neoen has completed the construction of the cogeneration unit, which entered service in November 2017. The unit consumes 150,000 tonnes of locally sourced biomass p.a. and has an electrical power output of 14.9 MW. The subsidiary handling the biomass procurement is also included in the sale.

The decision made by Neoen’s Board of Directors to dispose of these assets was announced on July 31. The exit from its biomass operations reflects Neoen’s desire to focus on its core business and continue driving forward its expansion in solar energy, wind energy and energy storage.

In 2018, the biomass business accounted for 9.1% of the Group’s total revenue, and its EBITDA margin stood at 34%.