Tersus Energy Plc
4 May 2006
Tersus Energy PLC completes biomass-to-electricity
Tersus Energy PLC, the AiM-listed
clean energy company, ('the Company' or Tersus Energy')
has announced the completion of its second platform
investment in the fast growing bioenergy sector.
Tersus has invested £750,000
into UK-based Enviro-Control Limited, (‘Enviro-Control’
or ‘ECL’) a UK-based world-leading animal
waste-to-energy developer utilising patented anaerobic
Tersus Energy has a 13.7% holding
in ECL having invested £375,000 at a pre-money
valuation of £3,000,000 and £375,000 at
a pre-money valuation of £6,000,000. Tersus also
receives a 5 year option at a strike price equivalent
to a £3,000,000 valuation which, if exercised,
would give it a 20% shareholding in ECL.
ECL was founded in 1989 and has operating
plants in the UK and in the USA. Its patented and wholly
owned technology converts animal waste into biogas (and
in turn electricity), high quality fertiliser, and clean
water. ECL projects will also qualify for the generation
of carbon credits. ECL will receive license fees from
projects utilising its intellectual property, and its
founders intend to float the business on a public market
in 2-3 years.
The investment terms also include
a commitment to establish two joint venture companies
in which Tersus will have a 50% interest:
- The first company will be
focused upon developing projects employing ECL technology.
Tersus will be primarily responsible for power marketing
(including offtake agreements and PPA's), electricity
hedging, green credit sales, commercial contract structure
and project financing. ECL will be primarily responsible
for technology assessment, resource assessment, system
design, installation, and permitting. ECL has a current
pipeline of projects potentially representing $350m
of capital expenditure, and both parties will work
together to source and develop additional projects.
- The second company will be
focused upon marketing and selling the high quality
fertiliser and other by-products generated in the
anaerobic digestion process.
The Board considers ECL an excellent
opportunity and believes it is ideally positioned to
benefit from the macro-economic drivers underpinning
growth in non-fossil fuel based electricity generation
and reduction in the use of increasingly scarce landfill.
Steven Levine, Chief Executive
'The investment and joint venture
companies with Enviro-Control are consistent with the
strategy of Tersus BioEnergy, one of our three businesses,
of partnering with proven bioenergy technology companies
with strong current and prospective project pipelines.
We are delighted to complete the investment having explained
the ECL opportunity to the market in December, when
we raised further funds. We are also pleased to have
the opportunity to make a larger investment than was
contemplated at that time due to improved transaction
dynamics and expanded project opportunities.
The Enviro-Control investment and
joint venture companies provide Tersus BioEnergy with
a platform from which to develop, invest into and operate
a significant portfolio of projects in the agricultural
The company continues to make progress
in relation to its investment and operating program.
An announcement, including results for the year to December
2005, is expected shortly.
Tersus Energy Plc
Steven Levine, Chief Executive Officer
David Wilson, Chief Operating Officer and Finance Director
Tel: 020 7408 5420
Tel: 020 7153 1540
Notes to Editors
About Tersus Energy Plc
Tersus Energy, which floated on AIM
in February 2005, is building three operating businesses
focused upon what it believes are the most attractive
and significant areas of the renewable and alternative
energy sector: Tersus Asian Renewables, Tersus BioEnergy
and Tersus Energy Controls:
- Tersus Asian Renewables
(TAR). Formed to exploit the demand for renewable
energy in Asia, TAR is focusing on wind, biomass and
clean coal, principally in China and India. It is
acquiring interests in businesses well placed to benefit
from growth in Asian renewable generation and developing,
investing into and operating a portfolio of renewable
energy assets with chosen joint venture partners.
- Tersus BioEnergy
(TBE). Formed to exploit the accelerating demand for
alternative fuel based supplies of energy, TBE is
focusing on biofuels (bioethanol and biodiesel) and
electricity produced from forest, agricultural, municipal
and industrial waste. It is developing, investing
into and operating a portfolio of bioenergy assets
with chosen joint venture partners.
- Tersus Energy Controls
(TEC). Formed to exploit the opportunity presented
by the increasing focus on energy efficiency and management
of electricity consumption, TEC is focused upon efficiency
applications for mobile (eg. hybrid and electric vehicles,
automatic guided vehicles, fork lift trucks) and stationary
(eg. building controls, energy management information)
end users. TEC intends to develop these opportunities
through continuing organic growth and acquisition.
Tersus Energy also maintains a strategic
and financial advisory service business, primarily targeting
established and emerging energy companies based principally
in Europe and North America.