Anaergia Sells Its Italian BOO Projects to Arjun Infrastructure Partners
Anaergia, a company based in Ontario, is selling six anaerobic digestion facilities in Italy to lender Arjun Infrastructure Partners. The decision to sell the projects before completion was made due to Anaergia’s inability to secure additional financing. As a result of the deal, Anaergia will receive a “de minimis” cash consideration from Arjun.
Transaction Details
- Arjun is terminating $145 million in Anaergia’s loan obligations.
- In exchange, approximately $55 million in loans will be provided between the companies.
- Arjun will also acquire the equity portion of the Anaergia subsidiary that owns the Italian projects.
This transaction will reduce Anaergia’s capital requirements and improve liquidity for the company. Anaergia CEO Brett Hodson expressed his optimism about assisting Arjun and the project teams in completing construction and advancing other business development opportunities in Italy.
Previous Financing
Less than two years ago, Arjun provided Anaergia with 100 million euros in mezzanine financing to support its plans in Italy. The financing was intended to support the development of 10 to 12 facilities.
Challenges Faced
Anaergia has faced challenges in bringing its portfolio of facilities online in Italy. Delays in electrical utility connections and other issues have caused setbacks. Despite these challenges, Anaergia remains optimistic about the support for biomethane projects in Europe.
Future Involvement
Following the deal, Anaergia will continue to participate in engineering, procurement, and construction work on the projects through a cooperation agreement with Arjun. However, Anaergia has no further requirements to provide additional capital.
Strategic Review
Anaergia is currently undergoing a strategic review due to challenges faced in both Europe and North America. The agreement with Arjun Infrastructure Partners is part of Anaergia’s efforts to address these challenges.
SDGs, Targets, and Indicators Analysis
1. Which SDGs are addressed or connected to the issues highlighted in the article?
- SDG 7: Affordable and Clean Energy
- SDG 9: Industry, Innovation, and Infrastructure
- SDG 11: Sustainable Cities and Communities
The issues highlighted in the article are related to energy production, infrastructure development, and sustainable urban development.
2. What specific targets under those SDGs can be identified based on the article’s content?
- SDG 7.2: Increase the share of renewable energy in the global energy mix.
- SDG 9.1: Develop quality, reliable, sustainable, and resilient infrastructure.
- SDG 11.3: Enhance inclusive and sustainable urbanization and capacity for participatory, integrated, and sustainable human settlement planning and management.
The article mentions the development of anaerobic digestion facilities for renewable energy production, which aligns with SDG 7.2. It also discusses the financing and construction of infrastructure projects in Italy, which relates to SDG 9.1. Additionally, the article mentions the challenges faced in bringing the facilities online, indicating the need for sustainable urbanization and management, as stated in SDG 11.3.
3. Are there any indicators mentioned or implied in the article that can be used to measure progress towards the identified targets?
- Indicator for SDG 7.2: Share of renewable energy in the total energy consumption.
- Indicator for SDG 9.1: Investment in infrastructure as a percentage of GDP.
- Indicator for SDG 11.3: Proportion of urban solid waste regularly collected and adequately disposed of.
The article mentions the anaerobic digestion facilities as a source of renewable energy, which can be measured by the share of renewable energy in the total energy consumption, indicating progress towards SDG 7.2. The financing and construction of infrastructure projects can be measured by the investment in infrastructure as a percentage of GDP, reflecting progress towards SDG 9.1. The challenges faced in bringing the facilities online highlight the need for proper waste management, which can be measured by the proportion of urban solid waste regularly collected and adequately disposed of, indicating progress towards SDG 11.3.
Table: SDGs, Targets, and Indicators
| SDGs | Targets | Indicators |
|---|---|---|
| SDG 7: Affordable and Clean Energy | 7.2: Increase the share of renewable energy in the global energy mix. | Share of renewable energy in the total energy consumption. |
| SDG 9: Industry, Innovation, and Infrastructure | 9.1: Develop quality, reliable, sustainable, and resilient infrastructure. | Investment in infrastructure as a percentage of GDP. |
| SDG 11: Sustainable Cities and Communities | 11.3: Enhance inclusive and sustainable urbanization and capacity for participatory, integrated, and sustainable human settlement planning and management. | Proportion of urban solid waste regularly collected and adequately disposed of. |
Behold! This splendid article springs forth from the wellspring of knowledge, shaped by a wondrous proprietary AI technology that delved into a vast ocean of data, illuminating the path towards the Sustainable Development Goals. Remember that all rights are reserved by SDG Investors LLC, empowering us to champion progress together.
Source: wastedive.com
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