A 12 MW combined heat and power project set for the Enfield area of north London, England has moved a step closer.

Kedco plc, (AIM:KED) has announced that the 12 MW Enfield Biomass combined heat and power (CHP) project has made inroads in terms of financing and also appointed N+1 Singer as its equity adviser.

The Enfield project already has has full planning and environmental permission for the conversion of 60,000 tonnes of waste timber per annum into up to 12MW of electricity and heat, remains on track to reach financial close and start construction in the third quarter of 2013.

A well as the appointment of an equity adviser, the Company has also received outline terms from a major UK bank for the provision of up to 70% of the total project cost.

Headline terms have also been received from two major energy suppliers to purchase 100% of the electrical output from the Enfield Project over a long-term basis. A decision on the preferred PPA offtaker will be made by the Board shortly in consultation with the potential debt and equity funders.

Detailed discussions have taken place with a large multinational corporate to purchase 100% of the heat generated by the Enfield Project. Similar to the electricity offtake agreement, it is anticipated that this will be a long-term contract and heads of terms are currently being discussed.

The Company is aware of the Lee Valley Heat Network which is being developed by three London borough councils. The aim of the network is to provide a new city-scale decentralised energy network to capture affordable low carbon heat (hot water and steam) from Energy from Waste facilities and dedicated CHP plants.

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