ALBIOMA : Go-ahead for Galion 2, the largest all-biomass power plant in overseas France

ALBIOMA

PRESS RELEASE
PARIS LA DÉFENSE, 15 DECEMBER 2014

GO-AHEAD FOR GALION 2, THE LARGEST ALL-BIOMASS POWER PLANT IN OVERSEAS FRANCE
Albioma and EDF sign the bagasse/biomass contract for Galion 2 in Martinique

The contract amendment covering bagasse/biomass prices for the Galion 2 power plant in Martinique was signed by Albioma and EDF on 5 December 2014, following approval by the Energy Regulation Commission (Commission de Régulation de l'Énergie).

This 40 MW facility, situated next to the Galion sugar refinery, which it will supply with process steam, will burn bagasse (sugarcane waste) produced by the refinery. Albioma will also develop new processes enabling the use of other forms of locally-available biomass: sugar cane straw, the unrecovered portion of distillery bagasse, coppiced wood, the non-fermentable portion of green waste and energy crops free from conflicts of use. Ultimately, local biomass should make up nearly 40% of the plant's fuel supply.

The necessary additional biomass will be imported in the form of wood pellets from North America and Brazil. The plant is now scheduled to begin operating in the first half of 2017. The contract covers a 30-year period from commissioning.

This all-biomass plant will enable local biomass resources to be recovered efficiently, creating significant numbers of jobs in the future fuel supply chain. The new facility will help to decrease Martinique's dependence on imported fossil energy, generating enough frontline renewable electricity to cover 15% of the island's energy requirements. As such, this major project is entirely consistent with the Martinique regional government's climate, air and energy policy framework, and a cornerstone of the efforts to implement France's energy transition Act.

Galion 2 represents an investment of around €170 million by Albioma Galion, a joint subsidiary of Albioma (80%) and its longstanding partner in the Antilles, COFEPP (20%). The facility will be financed by long-term project debt of approximately €120 million.

Jacques Pétry, Albioma's CEO, explains: "This agreement with our partner EDF is a historic milestone in Albioma's biomass strategy. Our determination to develop this innovative project has paid off, with the support of EDF, the public authorities and Martinique's regional council. As well as bagasse - a strategic energy resource for Overseas France - we will be able to use other forms of local and imported biomass to generate competitively-priced, all-renewable frontline electricity with a minimal carbon footprint."

Next on the agenda: release of the annual results for the 2014 financial year on 4 March 2015 (before trading).

ABOUT ALBIOMA

Albioma is an independent energy producer and world leader in the conversion of biomass into a highly-effective source of energy, in collaboration with its agri-business partners. For more than 20 years, Albioma has operated power plants recovering bagasse, a fibrous by-product of sugar cane, replaced by coal outside the sugar cane harvest. Its unique expertise has enabled Albioma to establish itself as an indispensable partner in the sugar and ethanol industry in the French overseas territories and Mauritius. Albioma is now developing power plants using only biomass, which recover, in addition to bagasse, green waste and wood industry residue. The Group also operates a highly-efficient photovoltaic installation and agricultural anaerobic digestion units. In 2014, the Group, which already had a presence in mainland France, the French overseas territories and Mauritius, began operating in Brazil, the world's leading sugar cane producer.

For further information, please visit www.albioma.com

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