REACT Energy secures new loan, technology agreements

8th Jan 2016 09:26

(ShareCast News) - REACT Energy was looking to continue its biomass development in the UK this week, with new agreements around a development loan facility and technology procurement.The AIM-listed renewable energy developer and operator made the announcement on Friday morning.It said it planned to use the proceeds of the loan for continued investment in its portfolio of biomass gasification projects in the UK.The key terms of the facility included a quantum of €750,000, which could be drawn down in three equal monthly instalments of €250,000, with the first instalment expected to be drawn in 8 January.It carried an interest rate of 8% p.a. on outstanding capital balances, which would accrue and be repaid in full on the repayment of the facility.Proceeds from the unsecured facility could be used solely to fund development costs associated with REACT's identified biomass gasification projects in the UK.Full repayment could be made by REACT or demanded by EBIOSS at any time after 7 January.At the same time, REACT Energy announced it had granted EQTEC Iberia, a subsidiary of EBIOSS, exclusivity to provide gasification technology as part of the engineer, procure and construct contracts for its biomass gasification project pipeline in the UK."As previously announced, Newry Biomass Limited, a 50.01% subsidiary of the company, has entered into an agreement with EBIOSS to purchase its EQTEC Integrated Biomass Gasification Power Plant which will, subject to securing the necessary financing, be used in the repowering of the Newry Biomass gasification project", the firm's board added in a statement.