Australian CHP plant rescued and council repaid

Congdong

There was a happy ending for a cogen facility in New South Wales, Australia this week when a buyer was found for the plant and the local authority repaid for a substantial loan.

Tweed Shire Council had a A$2.5m loan repaid 15 years early not long after Swiss firm, Capital Dynamics purchased the Congdong CHP plant, which had gone into receivership back in 2011.
Congdong CHP plant
The A$220m venture was recently sold by the NSW Sugar Milling Cooperative to the Swiss investment company for an undisclosed sum.

My Daily News reports that the council’s acting general manager Troy Green said when the venture went into receivership the council could have exercised its parent guarantee and called in the 20-year loan immediately, but opted to exercise patience.

“We decided to wait and hope for someone with the skills and expertise to sustain the industry and that’s what happened,” he said.

Depending on fuel supply, Capital Dynamics plans to run the Condong and Broadwater bioenergy plants during the sugar cane off-season, targeting peak pricing periods.

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