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ReNu Energy signs ARENA Funding Agreement for 1.6 MW Goulburn Bioenergy project

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Renewable energy company, ReNu Energy Limited (ASX: RNE) is pleased to advise that it has finalised the terms of a Funding Agreement for the Goulburn Bioenergy Project.

The Funding Agreement, announced to the market in November 2016, is for $2.1 million in grant funding from the Australian Renewable Energy Agency (ARENA) and will see the construction of an anaerobic lagoon, biogas processing and power generation facility at the Southern Meats sheep abattoir in Goulburn NSW.

The project will operate under a Build Own Operate Maintain (BOOM) model whereby ReNu Energy will own the digester, gas conditioning and generation equipment with the Southern Meats abattoir obtaining on-site renewable energy under a power purchase agreement (PPA) with no upfront costs and without the need to operate and maintain the plant and equipment.

ReNu Energy Managing Director and Chief Executive Officer, Mr Chris Murray said, “We are pleased to have finalised the Funding Agreement with ARENA, and look forward to commencing construction of the project in the coming weeks.

We wish to acknowledge the support and collaboration from ARENA over the past months whilst we finalised the Agreement and also the ongoing support of Southern Meats. With ever rising energy prices increasing the cost of production for the agricultural sector we continue to see strong interest in biogas systems.

Together with our solar PV offering, we are excited to be growing our portfolio of behind the meter renewable energy projects” ARENA plays a critical role in assisting technologies and businesses to successfully demonstrate and commercialise emerging renewable energy technologies.

With ARENA’s support ReNu Energy will demonstrate the technical and commercial viability of biogas projects. The knowledge from the Goulburn Bioenergy Project will further enable ReNu Energy to develop a portfolio of projects in the agriculture and meat processing sectors, the development of which will lead to cost reduction through capital cost efficiencies, risk diversification and a targeted lower cost of capital.

Source: ReNu Energy

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