Newry Biomass Ltd (NBL), a 50.01% subsidiary of energy developer REACT, which owns a Biomass Gasification project located in Newry has entered into an agreement with Spanish MAB-listed EBIOSS Energy AD.

NBL has acquired its EQTEC Integrated Biomass Gasification Power Plant, with a power output of 4MW, which NBL will use in the repowering of the Newry Biomass gasification project (Newry Biomass).

The total cost of repowering Newry Biomass, including the gasification power equipment to be purchased from EBIOSS, is estimated to be approximately £8 million.

Newry Biomass is a 4MW Biomass gasification project located in Newry, Co. Down, Northern Ireland. The project is a joint venture with Farmer Business Development, the company's 23.2% shareholder.

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Planning permission for the waste to energy plant converting 25,000 tonnes per annum of wood was received in May 2009. The project cost £11.7 million to construct and was funded through shareholder equity and loans. REACT invested £5.75 million and currently retains 49.11% of the economic benefit of the project, whilst Farmers has 50.89%.

Due to underperformance of the original gasification technology, a decision was made to repower the project with a new technology and with a new technology provider. Accordingly, the project was placed on a ‘'are and maintenance' programme in September 2014, pending additional funding required to engage a new technology provider, which the Company has today chosen. NBL has already exported electricity to the grid however the repowering of the project includes the completion of upgrades, subject to available funding, to the local electricity grid infrastructure which will increase export capacity from the site from 1MW to 4MW.