The Argentine development bank BICE and Banco Galicia have agreed to finance an 8-MW biomass plant through a syndicated loan of up to USD 7.5 million (EUR 6.6m) with a term of five years.

Located in Puerto Tirol, Chaco province, the biomass facility will require a total investment of USD 15 million. It is owned by Seismega SA and was awarded in the second round of the RenovAR tender. Construction works have already begun and completion is scheduled for the beginning of 2020, BICE said.

The power plant will use the biomass resulting from the extractive process of Seismega’s parent company Unitan SAICA to generate clean energy to be injected into the Argentine Interconnection System (SADI), the development bank noted in its press release.