Algarve Circular Economy & Tourism Waste Recovery
Materials recovery and organic-waste-to-energy facility addressing peak-season waste overload in a major tourism region.
Executive Summary
Senior secured credit facility funding a materials recovery facility and anaerobic digestion plant serving the Algarve's tourism-driven waste stream, which triples in volume during peak season. Long-term municipal waste-management contracts and a biogas offtake agreement with the national grid operator underpin recurring revenue.
Investment Thesis
- Peak tourist season triples municipal waste volumes, overwhelming legacy landfill capacity and risking EU landfill-diversion penalties.
- 10-year municipal waste contracts across four municipalities provide contracted, non-discretionary revenue.
- Biogas offtake agreement with national grid operator at a fixed feed-in tariff.
Use of Funds
Financial Snapshot
Transaction Structure
EUR 34M senior secured term loan, 5-yr tenor, first-lien on facility assets and assigned municipal contracts.
Risk & Mitigation
- · Seasonal volume variability
- · Feedstock contamination
- · Municipal contract renewal risk
- Minimum-volume guarantees embedded in municipal contracts
- Automated sorting technology reduces contamination-driven downtime
- Contracts carry automatic renewal with 24-month notice period
Timeline & Milestones
- 2025 Q2Municipal contracts executed
- 2025 Q4Biogas offtake agreement signed
- 2026 Q1Senior facility syndication opened
- 2026 Q3Financial close
- 2027 Q3Full facility commissioning
Sponsor
Atlantico Circular Resources Lda
Atlantico Circular Resources is a Portuguese waste-management operator with 11 years of experience and three operating materials recovery facilities across southern Portugal.
ESG & Impact
- Diverts 85,000 t/yr from landfill
- Biogas output offsets ~9,200 t CO₂e/yr
- Electrified collection fleet cuts local air pollutants
Data Room
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