ENESPA AG’s recycling project has been classified as fundamentally eligible for funding by a German development bank. Approval in accordance with the Federal Immission Control Act (BImSchG) process is now a prerequisite for subsequent commitment to financial support. This application is in progress.
German development banks support private individuals, clubs, associations, companies, research institutions or municipalities with public funding.
In addition to the Herne site with its many technical advantages, there are currently several locations that are interested in ENESPA AG’s recycling project. The focus is on the Schwarze Pumpe Industrial Park in Brandenburg/Saxony in particular, which, in addition to having similar technical capabilities to those in Herne, has the key advantage of financial support.
The regional development bank supports projects that create sustainable jobs and fit into the general conditions within the scope of the “Improvement of the Regional Economic Structure” (GRW). Some context: the German Federal Ministry of Economics provides targeted support to the economy in certain regions of Germany through development banks.
Basic recognition of eligibility
Over the course of an hour, CEO Cyrill Hugi and his team presented the unique project and business plan of the Swiss start-up. In the discussion that followed, many details were highlighted and discussed. The representatives of the regional development bank were very interested and reacted positively.
One of the largest recycling centres in Europe is to be built in the Schwarze Pumpe Industrial Park, and those involved agreed that the project was a perfect fit from many points of view. After many discussions, ENESPA AG received assurances that, in principle, the recycling project would be recognised as eligible.
The company ASG Spremberg GmbH is responsible for the company settlements in the Schwarze Pumpe Industrial Park and supports ENESPA AG with its pragmatiscm and efficency in many areas.
Schwarze Pumpe Industrial Park — an ideal location for ENESPA AG’s recycling project.
How much support can ENESPA AG expect?
It is estimated that more than 20 local jobs will be created. The project can be supported with up to 750,000 euros per position created. Prerequisites for this are:
- Approval by the authorities according to the Federal Immission Control Act (BImSchG)
- Secured overall financing, whereby 10% of financing must be provided by own resources
- Investment period: 36 months and a retention period of at least 5 years
- Guarantee of profitability
30% support is provided for investment in fixed assets, excluding land, vehicles and equipment. If the development bank gives its approval, then it will cover 30% of the costs of the construction of the facility up to the amount of the planned funding budget following the final decision.
Representatives from ASG Spremberg GmbH, which is in charge of business development at the Schwarze Pumpe Industrial Park, are very interested in ENESPA AG’s recycling project.
The next steps
The complete funding application consists of a considerable number of forms along with the approval of the Federal Immission Control Act. In order to apply for the Federal Immission Control Act (BImSchG) permit with the authorities, ENESPA AG and the equipment construction company, ASTRA, will prepare concept plans with the technical data. The completed funding application will be reviewed after it has been submitted.
ENESPA AG estimates that it will take two to three months to obtain the Federal Immission Control Act (BImSchG) permit and then a further month until the development bank’s decision.
To date, ENESPA AG has received approximately CHF 2 million from bondholders. Cyril Hugi says: “This means we are fully on track with the financing. The funds from the development bank will accelerate the project and give us more room to manoeuvre.”
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ENESPA AG will generate positive cash flow starting with the first investment. By operating several facilities simultaneously, revenues increase disproportionately and, accordingly, so does the value of the company. There is great demand for this technology. 18 locations in Germany are interested in operating a facility at this time.
The business development fund of the Schwarze Pumpe Industrial Park is very interested in the ENESPA project. Following a thorough investigation, the responsible development bank declared the project eligible for funding. The project will be supported by the development bank once the approval process is completed. The approval process is in progress. (As of July 2020)
The aim is for the first 5,000 kg/day facility in the industrial park to be commissionedby the end of 2020. As soon as this facility is in reliable operation, ENESPA will build another ten facilities and then gradually expand to forty facilities. The ten facilities are expected to be fully operational by the end of 2021.