Acciona Energía will build biomass plant in Cáceres with capacity of 50 MW

Acciona

Intermoney | While the market was open on Wednesday, Acciona Energía (Buy, Target Price 41 euros/share) announced that it will build a biomass plant with capacity of 49,9MW in the municipality of Logrosán (Cáceres). The company was an awardee in the third auction for the grant of the economic regime for renewable energies tendered by the Ministry for Ecological Transition and the Demographic challenge. This guarantees a sale price for the electricity which the plant produces during 20 years. Acciona Energía expects to start construction on the plant in the second quarter of 2023, with the aim of supplying energy in the second half of 2025.

Valuation: 

Although Acciona is basically focused on wind and photovoltaic energy, it has been involved in the area of biomass in Spain for years, with an installed capacity of some 62MW. The total in Spain of any type is some 4.600MW which, at the same time, is half of the company’s consolidated total. Its experience in the development of new capacity, as well as its focus on relatively few safe markets and acceptable debt situation, we believe justifies our including Acciona Energía in our Model Portfolio from this month. The group will announce its 9-month trading statement on 14 November after the market’s close. For the whole of 2022e, we expect a rise in EBITDA of 69% to 1.833 billion euros.

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