The Humber’s Saltend Tricoya project plant, which has suffered various delays and spiralling costs has been put on hold as a new owner was revealed this morning.
The new owner intends to freeze current plant activity on construction and commissioning for an anticipated period of at least six months
Accsys has reached agreement to acquire full ownership of Tricoya UK Limited (TUK)and Tricoya Technologies Limited (TTL), from its Consortium Partners. The consideration for this will be satisfied by the issue of 11.9 million new ordinary Accsys shares to the other Tricoya Consortium Partners (the “Restructure”).
The Share Issuance represents 5.74% of the current issued share capital of Accsys and based on the Accsys share price, it represents a value of around £8.4m.
NatWest has agreed to restructure its TUK debt facility, reducing the principal amount by approximately €9m to total €6m, under a new 7-year term. The NatWest facility remains ringfenced from the Accsys Group, the Accoya® plant at Arnhem and other joint ventures. No repayments are due until the facility maturity date.
This 6 month delay will significantly reduce the FY23 cash impact from Hull on a monthly cost run rate basis from approximately €4m earlier in CY 2022 to around €0.5m going forward.
During the Hold Period the Accsys Board will continue to assess the further work needed to finalise construction and commissioning of the Tricoya Hull Project and the forecasting of the remaining costs. The length of the Hold Period will be determined by the Board based on measurable parameters and will not be for an indefinite period.
Two separate specialist firms were engaged to validate the capital costs for the remaining construction and commissioning work required to bring the Tricoya Hull Project into operation. Noting that the plant is the first of its kind, the specialists suggest that the additional capital cost to complete and commission the plant is expected to be up to around €35m. This would take total project capital cost to up to around €138m, from the previously announced expected maximum of €103m on 30 June 2022.
