News

Vienna, AUSTRIA

Cycleenergy Biomass Power AG, an operator of six biomass Combined Heat and Power (CHP) plants in Austria, announces the closing of its third round of financing.

Following a successful green bond issue in January 2011 (Bloomberg and Reuters ISIN code AT0000AOMPY3), Cycleenergy has secured funding of EUR 18 Million from both private and institutional investors. The additional capital strengthens the company’s position in the rapidly growing market for biomass energy. Existing investors include two independent funds, New Energy Fund (NEF) and 3TS Capital Partners (3TS), and the founders Florian V. Dietz and Stephan Schuster.

With the completion ofits latest financing round, Cycleenergy has increased its equity capitalisation to approximately EUR 40 Million, paving the way for the next phase of its expansion strategy through the development of further power plant projects. It will also allow Cycleenergy to strengthen its position as an independent operator of plants for the cogeneration of electricity and heat from renewable energy resources in Central Europe.

The current transaction pipeline includes selective acquisitions of biomass CHP power plants within and outside of Austria. The company’s head of M&A, Christoph Haimberger, sees strong and continued growth potential through acquisitions, especially in neighbouring CEE countries such as Slovakia.

“We are pleased that with the new team of investors, we now have exactly those partners on board who share our vision of growth”, says the co-founder and CEO of Cycleenergy, Florian V. Dietz.

For this third round of capital raising, WHEB Infrastructure Partners served as adviser to one private investor,andCycleenergy was advised on its funding by the London-based capital introduction company The Elevation Co.

ABOUT CYCLEENERGY

Cycleenergy Group (www.cycleenergy.com) is a rapidly growing developer and operator of biomass CHP plants in Austria. Founded in 2006, Cycleenergy is currently an operator of six green Combined Heat and Power (CHP) generation plants. We operate these biomass combined heat and power plants based on state guaranteed fixed feed in tariffs and long term heat supply contracts.

In the past 18 months, Cycleenergy has doubled its production capacity to around 70 MW. We supply more than 50,000 households with circa 70,000 kWh of carbon neutral electricity, generated by woodchips. The produced heat is delivered to district heat networks and industrial firms in the surrounding areas, and saves more than 110,000 tons of carbon emissions each year.

In addition, Cycleenergy supplies residential customers with wood pellets marketed under its own “BioPress” brand name.