Cindrigo holds a 50-year lease on the Kaipola Waste to Energy plant in Finland, a 110MW Combined Heat and Power (“CHP”) plant, which has a 25MW electricity and 85MW steam production capacity.

Steam generated by the plant will be sold to the village of Kaipola and tenants in an industrial area close to the plant, with electricity sold to tenants in the same industrial area and to NordPool, which runs the leading power market in Europe.

Revenue
Based on current pricing and operational forecasts, the plant, upon reaching full operational capacity, has the potential to generate revenues of approximately €40 million annually, with EBITDA of c.€10 million.

It is expected that commercial operations will commence in Q4 2024, and the first-year initial revenues are estimated to be approximately €15 million.

Lease / Ownership
The plant was initially built and operated by UPM Kymmene Corporation as an integral part of its paper mill factory in Kaipiola, Finland. The lease held by Cindrigo via Kaipolan Energia OY, a Finnish company, comprises the land, buildings and equipment required to operate the plant. Cindrigo has a 90% interest in Kaipolan Energia OY, with the remaining 10% held by Danir AB, a major shareholder of Cindrigo.

Lease rent is €30,000 per month for the facility from the commencement of commercial operations, with potential increases up to €70,000 per month, dependent upon output performance.