Capital Dynamics buys Australian biomass plants
Capital Dynamics, the private asset manager for a UK-based pension fund, has acquired a number of biomass power plants in New South Wales, Australia.
The total 68MW portfolio includes two fully operational base-load plants that produce power and steam from local sugarcane waste and other biomass fuel sources. The power and steam is sold under long-term contracts to nearby sugar mills and the National Electricity Market.
These two facilities first came online in 2008, when they were the largest base-load renewable energy generators in Australia. They are fitted with combustion technology, including Siemens steam turbines and boilers from Babcock.
'This is a compelling investment which we have financed on an all-equity basis. Our investment breathes new life into the power plant operation and the future prospects for the local community in which they operate – especially to the local sugarcane growers who are so critical to the region's economy, says David Scaysbrook, MD in the Clean Energy and Infrastructure (CEI) team at Capital Dynamics. 'The plan is to own and operate these assets over the very long term, to improve them and to deliver to our investors strong financial returns from multiple revenue sources.'