CEFC provided a AU$75 million debt facility to support investment in new projects generating energy from waste coal mine gas and landfill gas, as well as remote hybrid renewables projects in Queensland. CEFC’s loan is on commercial terms that are consistent with EDL’s syndicated loan facility. EDL also obtained finance of AU$445 million under a syndicated loan facility provided by banks including Babson Capital Australia, Bank of America, ING, Investec, Macquarie, NAB and UBS.
CEFC’s finance facility will be used for projects that make beneficial use of what would otherwise be waste gases from coal mining and land fill, converting this to electricity. Waste coal mine gas is a reliable source of base-load power that can be used to substitute for coal-fired power. The CEFC has been repaid following EDL’s acquisition by the DUET group, providing a positive market validation of the EDL business model.