The Kaipola Waste to Energy plant in Finland is a 110MW Combined Heat and Power (“CHP”) plant, which has a 25MW electricity and 85MW steam production capacity.

The Plant is poised to become a crucial energy source for local industries and communities, promoting economic and environmental benefits. As Cindrigo continues to develop this project, Kaipola’s success is expected to enhance both energy recovery and economic resilience, reinforcing the Company’s commitment to sustainable infrastructure and renewable energy product.

Key info

Cindrigo holds a 50-year lease on the Plant (expires 28 February 2074), which started small scale commercial sales of heat in December 2024. Having established a reliable source of biofuel feedstock, the Company has a structured plan to gradually increase heat production and add electricity production.

Production

In December 2024, heat production started on a limited scale to tenants of the industrial park where the Plant is located. Production is planned to scale substantially (large volume combined heat and electricity production), when the Plant’s principal industrial heat/steam customer/offtake partner opens its new factory during 2025. The Kaipola Plant is expected to gradually increase output of both electricity and heat to 40MW (30 MW heat, 10MW power) during 2025, building to 60-70 MW in 2026 and increasing beyond that as new customers are secured.

The Plant currently uses wood and forestry waste for fuel and Cindrigo intends to seek environmental approval to restructure the fuel mix to enable it burn a wider range of waste, which would reduce costs and further improve margins.

Heat and Electricity Sales

Heat/steam will be delivered in the close proximity, utilising existing piping. The heat will primarily be sold to the Plant’s principal industrial heat/steam customer, with an offtake agreement in place.  During winter, heat will also be supplied to a small degree to the Kaipola Industry site and neighbouring village of Kaipola.

The terms relating to the sale of steam the Plant’s principal industrial heat/steam customer will be for an initial term of 5 years, after which it will continue on a rolling basis with a 12 month termination notice period. The steam will initially be sold at approx. €70/MWh and will be adjusted annually in accordance with the Helen Index. The Helen Index is a market-based electricity price index that reflects the cost of energy in the Finnish energy market. The monthly prices are reported by the leading Finnish energy operator Helen OY.

Electricity can be delivered locally and/or to the national power grid through Nord Pool a leading power trading company across Europe. It will be sold at market price.

Future Growth

Cindrigo is well-positioned to leverage growth in the WtE sector through Kaipola, which serves as a key asset in its renewable energy strategy. By focusing on Kaipola as part of a broader green economy initiative, the Company aligns with Finland’s regulatory framework and EU incentives, securing a stable revenue base from rising demand for clean energy and sustainable waste management.