Innovative manure processing hub II

With this proposition, you are investing in the next phase of the realisation of a circular manure processing hub in Emmen. The intended term is 36 months with a fixed interest rate of 8% per annum. As an investor, you will receive a first mortgage with a loan-to-value ratio (based on alternative usability) of 79.4% as security.

The innovative plant will produce high-quality natural soil improver and sustainable green gas through a unique production process. The technology processes manure through drying, pyrolysis and methanisation, with by-products being liquid CO₂, compost and waste heat. The plant will start with two reactors and has the option to expand to a total of eight reactors. The necessary permits have already been granted irrevocably.

The loan will be granted to STERCORE ENERGY EMMEN B.V. for the purchase of the plot and development costs. This company is part of STERCORE HOLDING B.V. Its management has extensive experience in biotechnology, process engineering and renewable energy. Both the supply of raw materials and the purchase of finished products are contracted with cooperative market leaders.

The key features of the proposition are as follows:

• Principal amount of € 5,000,000;
• Initial requirement of € 1,500,000;
• Intended term of 36 months;
• Fixed interest rate of 7.25% per annum;
• First right of mortgage;
• Loan-to-cost of up to 16.7%;
• Loan-to-value based on alternative use 79.4%; Environmental permit irrevocably granted; Supply of raw materials and removal of 
• finished products contractually agreed; Significant capital contribution from shareholders; Positive assessment process completed for 
• subsidies; Contribution to alternative use 79.4%; Project is underway. alternative usability 79.4%;
• Environmental permit irrevocably granted;
• Supply of raw materials and disposal of finished products contractually established;
• Significant capital contribution from shareholders;
• Positive assessment process completed for subsidies;
• Contribution to energy and sustainability transition;
• Contribution to circular economy;
• Highly experienced underlying organisation;
• Interest payment per month;
• Immediately interest-bearing from deposit;
• Free of one-off brokerage fee of 0.45%.

The innovative manure processing hub of about 10,119 m² will be developed on the GETEC industrial estate in Emmen, strategically located with good accessibility to agricultural areas. The plant will start with two reactors (expandable to eight) and has an irrevocable environmental permit to process 350,000 tonnes of manure with a minimum dry matter content of 25%.

The innovative production process comprises three main stages: drying, pyrolysis and methanisation, producing high-quality Bio-Based Carbon and sustainable green gas. Unlike conventional manure fermentation, STERCORE uses an advanced thermochemical process that results in higher-value end products and greater CO₂ reduction.

The hub realises a calculated negative CO₂ equivalent of -300,000 to -350,000 tonnes of CO₂ per year (about 10% of Drenthe province's total emissions). The supply comes from an average radius of 70 km, including the German Emsland. A positive Technical and Economic Due Diligence was carried out for the project by CINEA (European Climate, Infrastructure and Environment Executive Agency).

The property combines high-quality industrial specifications with sustainable features such as an advanced energy recovery system, and has all necessary utilities and infrastructure.

The Netherlands faces a structural manure surplus, with more than 75 million tonnes of manure to be processed every year. The agricultural sector is under increasing pressure due to stricter nitrogen and CO₂ regulations. At the same time, the market for Bio-Based Carbon (biochar) is growing exponentially - with an expected global market size of €3.1 billion by 2025, rising to €6.8 billion by 2030, bolstered by European regulations such as the EU Regulation 2019/1009 and the European Soil Strategy.

The demand for green gas is increasing significantly, with no limitations in sales opportunities. The expected price development for green gas and associated Green Bonds is positive, partly due to European renewable energy targets.

The strategic location in Emmen was chosen because of its ideal location between important livestock farming regions and industrial customers. A spatial decision has already been taken for this project with broad support from Emmen City Council, and STERCORE has signed a Green Deal with the province of Drenthe. The combination of growing market demand, favourable regulations, strategic location and administrative support creates a solid basis for the manure processing hub.

The supply of raw materials is contractually secured with a cooperative market leader in the agricultural sector. For the sale of the end products, contractual arrangements have also been made with cooperative market leaders. For instance, the purchase of the green gas is secured through a 10-year purchase agreement with a global European oil and gas group. This guarantees both supply and sales, contributing to the project's reliability and financial resilience.

The building will be realised with a focus on sustainability and circular economy. The production of Bio-Based Carbon creates a CO2 sink and reduces the use of chemical fertilisers, while the green gas produced contributes to the reduction of fossil fuels. In addition, the plant generates CO2 removal certificates (CORCs). This results in a positive environmental impact and increased attractiveness for both users and investors.

The business model of the manure processing hub is therefore profitable without reliance on subsidies, underlining the financial sustainability of the project. The plant is designed to be profitable from commissioning, even with the initial configuration of two reactors.

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