Gren has finalized the acquisition process of Energia Verde – a green energy producer in Riga
Following the fulfillment of customary closing conditions, Gren has concluded the acquisition process of Energia Verde – a green energy producer in Riga. The transaction was started in July 2021 when BaltCap Infrastructure Fund signed an agreement to sell Energia Verde to Gren.
Energia Verde is a company that operates a biomass combined heat and power plant (CHP) in the Riga region. The CHP plant uses local, renewable energy resource – woodchips, to produce electricity and heat energy. Heat energy is provided to Riga district heating system. The CHP plant is equipped with 18 MW HoSt Bio-Energy Installations high-pressure water tube steam boiler and a 3.98 MW steam turbine. The plant is in commercial operation since 2017.
Andris Vanags, the Country Head of Gren operations in Latvia comments: “The acquisition of Energia Verde is part of Gren’s strategy to grow through targeted strategic acquisitions and new greenfield projects. In the current geopolitical environment, the role of local and renewable energy resources for energy production is of utmost importance to secure the necessary energy supplies, mitigate the energy price increase as well as address the environmental targets. We will use our experience and know-how to secure the added value for the customers.”
Ilkka Niiranen, the CEO of Gren explains: “Gren focuses on developing and providing sustainable energy solutions, primarily district heating. For more than 10 years Gren companies in the Baltic countries have been working purposefully to reduce our dependence on imported natural gas. We already mainly use renewable and local resources for energy production: in Jelgava, Daugavpils, Pärnu and Tartu we use wood chips, while in Klaipeda and Kaunas we use waste. The biomass CHP plant in Riga is a logical and appropriate addition to our production fleet.”
The CHP plant near Riga will continue its operations and supplies of competitive and clean district heating produced from local, renewable energy resource – woodchips, to A/S Rīgas Siltums – the operator of Riga district heating system.