Foresight and UK GIB back 10MWe gasification plant in Hertfordshire
Foresight Group and the UK Green Investment Bank (GIB) have announced a £30 million (€41 million) investment in the construction of a new £60 million waste-to-energy gasification facility in Hoddesdon, Hertfordshire.
The plant will be the first commercial-scale, refuse derived fuel (RDF) gasification plant to be construction financed by third party investors. The gasification technology, which will treat commercial and industrial waste, will be designed by Stafford-based Biomass Power, with Bouygues Energy and Services acting as EPC and O&M contractor.
Over its lifetime, this state-of-the art gasification facility is forecast to:
• Supply renewable electricity equivalent to the needs of more than 7,000 homes each year
• Reduce greenhouse gas emissions (GHGs) by more than 900,000 tonnes, equivalent to taking nearly 16,000 cars off the road each year
• Increase the production of RDF feedstock, resulting in the increased pre-treatment and recycling of waste which is currently sent to landfill
• create up to 110 engineering, construction and project management jobs and 17 full time jobs once operational.
The 10MWe plant, developed by AssetGen Partners, will be powered by more than 90,000 tonnes of RDF sourced from the commercial and industrial sectors and supplied by two UK waste suppliers, Biffa and Powerday.
The plant is to be built 22 miles northeast of London. Work on the plant will begin shortly and it is expected to begin operations in the first half of 2017.
GIB, through its fund manager, Foresight, is investing £30 million in a combination of shareholder loans and equity with co-investors NOY and P3P providing £20 million and £10 million respectively on the same terms.
GIB's investment through Foresight is in addition to the recently announced Recycling & Waste LP (RaW) fund, which will target smaller waste and recycling projects up to a total value of £30 million.
Minal Patel, director at Foresight Group, says: 'We have worked over many months with our financing partners, our contractors and suppliers to structure and complete this landmark investment, which is the first project finance investment into a utility scale merchant waste RDF fuelled gasification project in the UK. This facility will be making an important contribution to energy security at a national level and waste management at a local level.'
SOURCE: Green Investment Bank
