EBRD to Finance Modus Energy Biogas Projects in Belarus
Renewable energy company Modus Energy will build four biogas power plants in Belarus. A loan of 15 million dollars (12.3 million euros) to finance the plants will be provided by the European Bank for Reconstruction and Development (EBRD). The provision of this financial package is foreseen in the agreement signed between the international group of companies Modus Group and the EBRD. The bank is willing to cover 60% of the costs of all planned projects, the remaining development costs will be invested by Modus Group itself.
“Belarus is not lagging behind the rest of Europe when it comes to the development of the renewable energy sector. The country is striving to effectively rebalance their energy sources. The size of the market, the national focus on systemic development of the sector, as well as the above board auction system that allows for effective investment and development, make the Belarusian market attractive to biogas companies. Our experience in this country has shown us the level of attention the government is paying to attracting foreign investment and creating an investment-friendly environment,” says Ruslan Sklepovič, a Modus Group board member responsible for renewable energy business projects.
Sklepovič adds: “Our investments into biogas energy plants followed several successful public auction bids. It is our extensive experience in the biogas market and the fact that Modus Energy is one of the largest companies of its sort in the region that allows us to attract these projects. ”
Alex Pivovarsky, Head of the EBRD office in Belarus, is enthusiastic about the projects too: “The EBRD promotes investments in renewable energy projects and supports cross border cooperation in this field. The financed projects correspond with the strategy of the EBRD in Belarus and are in line with the objective to enable the transition to a green economy. The projects under development will contribute to the sustainability of the country’s energy sector and will promote the implementation of more renewable energy projects in the region.”
In total two biogas plants will be built in the Brest and Grodno regions of Belarus using EBRD and Modus Group funds. Once finished, the projects will produce 32 GWh of electric energy a year and the same amount of thermal energy. The forecast is that the plants will reduce carbon dioxide emissions by 15.3 K tons a year.
On top of this, Modus Energy is planning another project in Belarus this year, but this one without funding from the EBRD.
All plants will be built next to livestock facilities which will provide the materials for the production of biogas. It is estimated that the biogas plants in Belarus will process a total of 528 K of livestock manure a year, with the total capacity of the plants reaching 5 MW.
Similar projects for biogas plants have been implemented by Modus Energy in Lithuania. The company is now focusing on developing its activities and allocation of investments in Poland, Belarus, Spain and other countries.