Cortus sign agreement for heat supply from three WoodRoll facilities with Italian client

The wholly owned subsidiary Cortus Energy Italy S.r.l. has signed a 20-year agreement to supply heat from a total of three WoodRoll facilities of 5 MW each, i.e. in total 15 MW, with an Italian agricultural company. The facilities will be built on the Italian client’s land and land lease agreements have been entered into. When the first plant of 5 MW delivers as per the agreement the realization of the remaining two follows.

The agreement is based upon the Letter of Intent that was announced September 6, 2013 with a significant change: In light of the good profitability from the sale of renewable electricity the board of Cortus has decided that Cortus will own and operate the facilities to sell excess heat to the Italian customer and sell renewable electricity to the public electricity network and thereby obtain government subsidies for renewable electricity for 20 years.

The application processes for environmental permits and building permits will now begin. These form the basis for applications for government subsidies for renewable electricity for which decisions are obtained by September 2015. The agreement with the Italian customer is conditioned to that Cortus’ application for subsidies for renewable electricity is approved.

"With this agreement there are conditions in place to build a first profitable reference site of 5 MW. Such a facility provides the ability to take advantage of the great interest that exists in Italy to produce renewable electricity. We also see that similar opportunities exist in other markets in Europe, such as Germany" says Rolf Ljunggren, CEO of Cortus Energy AB.

For further information, please contact:

Rolf Ljunggren, CEO

Phone: +46 (0)8 588 866 30

www.cortusenergy.com