Lecta invests in RDF boiler for Condat mill

The RDF boiler project is based on a circular economy, as the company will collect the waste with high biogenic content that will be used as fuel from local sources. This will help to reduce the volume of waste that currently cannot be recovered and would otherwise end up in landfills.

Regarding energy, the new boiler will cover about 50 percent of the mill’s steam needs. This will increase the mill’s competitiveness because the generation of steam will be much less expensive than with natural gas. In addition, there will be a reduction of gas-related CO2 emissions by a total of 55.000 tons per annum.

‘This energy project is an important milestone in the ongoing transition of Lecta towards new growth markets and the utilization of more sustainable energy. The new boiler will ensure a stable, long-term supply of cost-competitive and 100 percent renewable steam as an alternative to fossil energy sources like natural gas. In addition to the reduction of CO2 emissions, this project will contribute to the advancement of the circular economy. We have found in Kyotherm the right partner to provide us with the financing for this project thanks to their flexibility and transparency,’ said Gilles Van Nieuwenhuyzen, CEO of Lecta.

The project's financing has been assigned to Kyotherm, one of the leaders in the renewable heat projects sector in Europe, which will finance up to EUR 45 million of a total project CAPEX of EUR 56 million.

‘We are delighted to partner with Lecta in supporting this strategic and pioneering RDF project. Kyotherm has been able to advise Lecta and be a partner of value to provide adequate financing. The environmental benefits embedded in the project – low carbon steam and circular economy - are significant and at the core of our impact strategy. Societal benefits will also derive from this project as it will reduce our imports of gas by about 280 GWh per year,’ commented says Arnaud Susplugas, CEO of Kyotherm.

The closing of the financing agreement signed is scheduled to happen during the first quarter of 2023 after a certain number of precedent conditions are met.