UK district heating plant in $190m refinancing

A district heating plant in the UK has secured à‚£150m ($193m) in what one investor says is the largest institutional-only financing deal in the country’s biomass sector to date.

The 40 MWe biomass-fired combined heat and power (CHP) Sleaford Renewable Energy Plant (pictured) in Lincolnshire came online in 2014 and is operated by Burmeister & Wain Scandinavian Contractor (BWSC).

As a “good quality CHP plant”, the plant benefits from two Renewable Obligation Certificates (ROCs) under the UK’s renewable energy scheme, providing heat to the local community for free under long-term offtake contracts.

The proceeds from the financing repaid a project financing, said Glennmont Partners, one of Europe’s largest clean energy infrastructure investment funds which successfully completed the refinancing.

The firm added that the à‚£150m financing “has been placed to a large European institutional investor”.

Joost Bergsma, CEO of Glennmont Partners, said his company was “delighted to be completing one of the largest biomass transactions of 2017 for à‚£150m.

“This transaction further highlights that biomass is a highly efficient renewable energy technology capable of attracting significant amounts of long-term, competitive institutional capital. The refinancing complements our strategy of building portfolios of renewable projects diversified by both geography and technology in order to provide predictable returns to investors.”à‚ 



No posts to display