£138m Cramlington biomass project achieves financial close
The £138 million (€187 million) Cramlington biomass power station in Northumberland, UK has successfully reached financial close.
The new 27MW biomass combined heat and power (CHP) plant will provide renewable electricity and heat to adjacent pharmaceutical businesses. It will be fuelled with sustainable forestry by-products sourced from the local area.
The steam cycle will include a reheat stage, typically only seen on larger projects, to deliver enhanced efficiency.
Mott MacDonald, lenders' technical advisor on the project on behalf of Barclays Bank who is providing £90 million of financing for the scheme, has completed a technical and environmental review of the project, which is Barclays Bank's first biomass deal in the UK. The consultancy will now monitor construction until the project is completed in 2017.
Nick Escott, Mott MacDonald's project director, says: 'Our low carbon advisory team have thoroughly analysed the technical, environmental and commercial aspects of this project and is delighted that our advice has helped the project reach financial close. Mott MacDonald has strong expertise in guiding, advising and supporting these types of projects and we look forward to continuing our role as the project moves into the construction phase.'
This appointment follows on from Mott MacDonald's lenders' technical advisor role on the £74 million Speyside biomass power station in Moray, Scotland, which was developed by the same client and reached financial close in August 2014.