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FDE secures a new EUR 20 million green bond for the development of its low carbon energy solutions in Europe

3 October 2022

Pontpierre, France, October 3rd, 2022 – FDE (Euronext: FDE – ISIN: FR0013030152), a carbon negative energy producer, is proud to announce the issuance of a second green bond for the development of its low carbon energy portfolio in Europe. Following up on its successful bond issuance last year, the financing has been secured with its long-term financial partner, Edmond de Rothschild Asset Management (EDRAM), a leading energy and infrastructure investment manager.

An additional sizeable financing to support FDE’s development strategy

This green bond will fund the Group’s existing energy portfolio as well as the strong pipeline of high value Liquefied BioGas (LBG) and Bio-CO2 projects currently being developed by its subsidiary Cryo Pur.

The financing amounts to EUR 20 million and is in addition to the EUR 40 million green bond issued in September 2021 with the EDRAM’s Infrastructure Debt Platform, BRIDGE. The financing qualified as a “Green Bond” and the issuance has been assessed as compliant with the ICMA (International Capital Market Association) Green Bond Principles via the second-party opinion by EthiFinance, a renown independent expert.

The bond has an attractive 7-year bullet tenor, thanks to FDE’s track record in constructing and operating best-in-class assets, with high visibility on cash generation on the back of strong offtake contracts. This robust business model allows the Group to secure attractive returns on the capital deployed on each production site…

FDE has therefore all the financial resources required to accelerate its development strategy and reach FY 2026 targets of over EUR 100 million revenues, an EBITDA exceeding EUR 50 million and to reinforce the Group’s environmental contribution by avoiding over 10 million tons of CO2eq emissions per annum.

The growth plan is well under way

While FDE is still waiting for the French state’s final approval to capture Abandoned Mine Methane (AMM) on new sites in Northern France and the green light from the Ministry of Ecologic Transition on FDE’s application to produce its certified reserves in Lorraine, the Group has made significant progress on other fronts.

The first 15MW solar farm in Tritteling is now ready to start production in the next couple of weeks and shall benefit from very attractive selling price conditions.

Following the recent acquisition of Cryo Pur, the company’s restructuring and implementation of FDE’s operator model is progressing rapidly in order to fast track the deployment of Cryo Pur’s leading technologies across Europe and to strengthen the Group’s position on strategic biogas and CO2 markets.

In addition, Cryo Pur has been granted a new patent, bringing the number of major families of international patents owned to 8. The recent patent relates to a very promising cryogenic process that allows carbon capture contained in liquid methane, a solution that would be key to efficiently extract CO2 associated with large scale LNG facilities.

A long-term partnership to accelerate investments in low carbon energy projects

“The successful placement of our second green bond is the testimony of our solid financial position and the confidence Edmond de Rothschild Asset Management has in Cryo Pur’s potential and FDE’s FY 2026 strategic plan announced last July. The transaction will allow the Group to finance all its low carbon projects in Europe, in line with our commitment to be a leading negative carbon footprint energy producer. We are extremely grateful to Edmond de Rothschild Asset Management for entrusting us with additional capital and for its ongoing support”, welcomes Julien Moulin, Chairman of FDE.

Jean-Francis Dusch, CEO of Edmond de Rothschild UK, CIO of Benjamin de Rothschild Infrastructure Debt Generation (BRIDGE) and Global Head of Infrastructure, Real Assets & Structured Finance explains: “EDRAM is proud to extend its support to FDE, an emerging leader in low carbon energy solutions in Europe. The long-term relationship EDRAM is building with FDE fully illustrates our approach to sustainable investment through concrete, long-term actions in favor of companies such as FDE with a business designed to solve environmental challenges. For us, sustainability is, more than ever, a priority in the face of a rapidly changing world”.

LPA-CGR as legal counsel. EDRAM was advised by BENTAM as legal counsel.

FDE is very confident to achieve by FYE 2026, revenues exceeding EUR 100 million with an EBITDA over EUR 50 million, combined with 10 million tons of CO2eq emissions avoided per annum.

Next announcement:
October 20th, 2022 – FY2022 Annual results

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climate change.
Your local resources, will.

Climate change is an undeniable reality. We can already see its serious consequences for our planet. It is now urgent to act.

At FDE, we refuse to participate in initiatives that generate pollution beyond our borders, even if they reduce the carbon footprint of our local territories. Whether it is a question of carbon footprint or pollution, there are no limits.

It is our duty to build sustainable energy solutions that move towards global carbon neutrality. Today, the most resilient and sustainable energy solution is even more self-evident: it is imperative that energy remains local, within short supply chains, as close as possible to the needs of local communities and consumers.

Considering these, at FDE, we are taking actions and offering tailor-made, local multi-energy solutions.

By making the most of local resources, our offer enables us to provide territories with energies with a triple benefit: reduced carbon footprint, economically competitive and contributing to the socio-economic development of the area. We choose abandoned sites, make the most of the potential of local suppliers and service providers, and participate in a local center of expertise that involves universities, local authorities and associations in the local energy project.

FDE lacks neither the resources nor the know-how to deploy tailor-made energy solutions for everyone and for the planet.

Our engineers embrace the energy transition with a pragmatic view.

Recovering abandoned mine gas avoids fatal gas emissions into the atmosphere, while local coal gas reduces the need to import much more carbon-intensive gases. Abundant solar energy is both local and renewable.

To support the energy transition, at FDE, we are constantly innovating, looking for new solutions for the future, such as hydrogen, a decarbonized energy, or CO2 sequestration in coal.

In addition, all energy produced by our Group is designed to be more virtuous. All these processes therefore make FDE the only French energy producer with a negative carbon footprint.

HSE POLICY

In accordance with its values and code of ethics, and with the aim of pursuing the objective of:

  • Guarantee the integrity of our assets,
  • Ensure a safe and healthy working environment for its employees and subcontractors,
  • Guarantee the health and safety of all personnel working on and off-site,
  • Limit environmental impact.

 

FDE wishes to promote the following HSE principles:

Identify, prevent and control impacts and risks to health, safety, security and the environment,

Develop the company's activities in a sustainable and eco-responsible manner,

Improve the working environment for its employees and subcontractors.

Consequently, FDE undertakes to:

Ensure the rigorous application of regulatory procedures in force with respect to safety, health, environment and the preservation of public security,

Impose operational management with advanced criteria for environmental protection, pollution prevention and energy optimization, as part of the ecological transition,

Systematically verify compliance with HSE principles through audits and practical exercises, with the aim of continuously improving the system and its performance,

Define indices and performance indicators for monitoring HSE activities and promote benchmarking to identify areas for improvement,

Encourage employee participation and involvement in health, safety and environmental protection processes through training and creation of tools for sharing experience and knowledge.

This culture of risk prevention and control applies to all employees, partners and suppliers. It involves setting concrete objectives and deploying action plans as part of a continuous improvement process to better anticipate tomorrow's challenges. This policy is reviewed annually, as are the associated indicators and targets.

Antoine FORCINAL
Directeur Général,