The project financing agreement was signed with Kyotherm on November 11th.
Lecta has decided to invest in a refuse-derived fuel (RDF) boiler for its Condat paper mill in France, which will be finished by mid-2024. This is a great energy transformation project that presents multiple environmental and economic advantages, in line with the Sustainability goals that Lecta is working on.
The RDF boiler project is based on circular economy, as we will collect from local sources the waste with high biogenic content that will be used as fuel. This will help to reduce the volume of waste that currently cannot be recovered and would otherwise end up in landfills.
Regarding energy, the new boiler will cover about 50% of the mill’s steam needs. This will increase the mill’s competitiveness because the generation of steam will be much less expensive than with natural gas. In addition, there will be a reduction of gas related CO2 emissions by a total of 55.000 tonnes per annum.
“This energy project is an important milestone in the on-going transition of Lecta towards new growth markets and the utilisation of more sustainable energy. The new boiler will ensure a stable, long-term supply of cost-competitive and 100 percent renewable steam as an alternative to fossil energy sources like natural gas. In addition to the reduction of CO2 emissions, this project will contribute to the advancement of the circular economy. We have found in Kyotherm the right partner to provide us with the financing for this project thanks to their flexibility and transparency” says Gilles Van Nieuwenhuyzen, CEO of Lecta.
The financing of the project has been assigned to Kyotherm, one of the most active actors in the renewable heat projects sector in Europe, who will finance up to EUR 45 million of a total project capex of EUR 56 million.
“We are delighted to partner with Lecta in supporting this strategic and pioneering RDF project. Kyotherm has been able to advise Lecta and be a partner of value to provide the adequate financing. The environmental benefits embedded in the project – low carbon steam and circular economy – are significant and at the core of our impact strategy. Societal benefits will also derive from this project as it will reduce our imports of gas by about 280 GWh per year” says Arnaud Susplugas, CEO of Kyotherm.
“We also would like to thank the French authorities for their support on this project for the last 3 years. We notably highly appreciate the close cooperation with Ademe which has been crucial for the success of this structural project for our mill by providing a subsidy of EUR 14 million” adds Alain Gaudré, President of Condat.
The closing of the financing agreement signed is scheduled to happen during the first quarter of 2023 after a certain number of precedent conditions are met.
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