Amsterdam Project Update – Construction Begins – 23 April 2018
Further to the announcement on 8 March 2018, the directors of Integrated Green Energy Solutions Ltd (“IGES”) are pleased to advise that the initial site work phase on the Amsterdam project has been completed and piling is now underway. The below photo shows the first pile being driven into the ground until it hits bedrock. There will be in excess of 780 piles driven into the site over the next 8 weeks. This key stage creates the foundation for the Amsterdam facility superstructure and is expected to be completed in June 2018.
Construction of the Amsterdam project is due to conclude and road ready fuel is scheduled to be produced by the end of 2018.
The board of directors look forward to providing you with further updates as construction of the Amsterdam facility progresses.
Amsterdam Site Work Begins – 8 March 2018
Further to the announcements on 30 January 2018 and 19 February 2018, the directors of Integrated Green Energy Solutions Ltd (“IGES”) are pleased to advise that site work has begun on the Amsterdam project. The below photo shows the work being done to level the land as a first phase of the piling process.
The IGES project team are currently working to finalise all pre-construction processes in readiness for the completion of the piling. The entire construction project is due to conclude and road ready fuel is scheduled to be produced by the end of 2018.
IGES is continuing to progress the construction of the Amsterdam site with the major emphasis now being the progression of the piling as well as planning the critical path for all subsequent stages of construction.
Off-take Agreement Executed for Amsterdam Output – 19 February 2018
The directors of Integrated Green Energy Solutions Ltd (“IGES”) are pleased to advise that they have signed a binding 5-year agreement for the purchase of all road ready fuel produced from the IGES Amsterdam facility. The agreement is signed with FinCo Supply and Trading BV (“FinCo”).
This contract has been entered into following the completion of notarisation of the purchase of the
Amsterdam entity, Bin 2 Barrel Amsterdam BV.
FinCo is a well-established company in the business of the storage, trading and distribution of oil and oil-related products in Northwest Europe. The company represents a good match for IGES as it is also focused on further reduction of CO2 emissions and views safety and sustainability as key imperatives. FinCo’s objective is to further expand their activities in the Northwest European downstream energy market.
Further information regarding FinCo is available at: https://www.fincofuel.com.
Meanwhile, IGES is continuing to progress the construction of the Amsterdam site with the major emphasis now being the progression of the piling as well as planning the critical path for all subsequent stages of construction.
Concurrently, IGES continues to develop the three sites in the UK and the Camden, Indiana USA site.
Purchase of Amsterdam Company with EPA Approval to Operate – 30 January 2018
- Road Ready Fuel by December 2018: IGES Purchases Amsterdam Company with EPA Approval to Operate
The directors of Integrated Green Energy Solutions Ltd (“IGES” or “the Company”) are pleased to announce the purchase of an Amsterdam based entity, Bin 2 Barrel Amsterdam B.V. This purchase comes with a site in Amsterdam that has a fully approved and sanctioned Environmental Approval Permit to operate a waste plastic to road ready fuel permit. This strategic purchase will allow IGES to be producing Road Ready Diesel that meets European Standard EN590 and gasoline by December 2018.
- Environmental Approval and Construction Development
With the environmental approval in place for the Amsterdam plant, we are able to commence construction immediately. The first step in construction is to lay foundations for the site by undertaking piling activities at the site. This piling project has been quoted to cost over AUD$1.5 million and the assignment has been awarded to Stout Van Herk Group – a Dutch construction company, established in 1908 that is active in the field of new construction, renovation and maintenance with a strong focus on sustainability. The piling phase of the project has a 12 to 14 week duration and upon re-listing and has now been allocated a commencement date of 5 March 2018.
- Forecast Construction Investment and EBITDA
The Amsterdam site has an initial construction budget of AUD$24 million – including all labour, site and operating costs during the construction phase. Based on the project modelling utilised, construction for the entire project is due to conclude on 22 November 2018. That is the site will be producing road ready fuel by late November 2018 with sales revenue to be reported in December 2018. The pay-back period on all construction costs is forecast to be 2 years based on a profit contribution per litre of AUD$0.30.
- Funding
Construction of the Amsterdam site will be funded via the loan contract in place with Structured Growth Capital. The loan under this contract has a 15 year term and an interest rate of 8.5%.
- Terms of the Purchase of Amsterdam Entity
The terms of the acquisition of Amsterdam entity operating in the Plastics to Fuel space have been finalised and completion was subject to the re-listing of IGES and completion of the BSA. Now that these milestones have been passed, the final phase of the acquisition, which is notarisation of the contract, can be completed. That is the 90% ownership of the company, Bin 2 Barrel Amsterdam B.V., by Integrated Green Energy Singapore Ltd, a 100% subsidiary of Integrated Green Energy Solutions Ltd, will be notarised in both Australia and Amsterdam in a matter of days.
- Amsterdam Site Location
The address of the site is located in Petroleumhavenweg, Amsterdam.
Below is a map showing the location of the site as well as photos of the site. As part of the development in Amsterdam we have two new employees Paul Harkema and Floris Geeris.
- Amsterdam Entity Name
The process to change the name of the Amsterdam entity had begun. The name will be changed to “Integrated Green Energy Amsterdam B.V.”.
- Positive Impact of Re-Listing on Operations and Implementation of Strategy
With the relisting of the Company also comes the ability to act on the strategies, plans and negotiations communicated to the market during completion of the Business Sale Agreement (“BSA”).
Specifically, the relisting immediately results in:
- The completion of the BSA with Integrated Green Energy Ltd
- Unqualified right of ownership of all software under the BSA
- The formal change of primary activity of the company
- Completion of the purchase of the Netherlands entity
- Commencement of construction of the company’s first Plastics to Fuel facility in Amsterdam
- Activation of the environmental approval obtained in the Netherlands
- Other Projects
The progress of development of the three sites in the United Kingdom, the site in Camden Indiana, USA, as well as further international business development, continues. The Camden Indiana site will include revenue generated from the construction of CDMs. Further information on this will be provided as the site construction commences.
However, the immediate, major focus of the Company’s resources is the EPA approved construction of the Amsterdam site.