Glennmont completes purchase of 40MW biomass project
Glennmont Partners has completed the £160 million (€220 million) purchase of the Port Clarence Energy Project from ECO2 and Temporis Capital on behalf of its dedicated clean energy fund, Glennmont Clean Energy Fund Europe II.
The Port Clarence Energy Project will see a new biomass power generation plant built at Port Clarence, Stockton-on-Tees, UK, providing 40MW of combined heat and power (CHP) enabled renewable energy to the UK Energy market.
The plant is expected to become operational in the first quarter of 2018.
The purchase and further construction of the Port Clarence Energy Project is being supported by debt arranged by Deutsche Bank and Danske Bank with the support of Eksport Kredit Fonden (EKF), the export credit agency of Denmark.
Glennmont Clean Energy Fund Europe II has completed six deals to date and comprises biomass, onshore wind, and solar photovoltaics assets located in France, Italy, the UK, and Portugal.
Joost Bergsma, CEO of Glennmont Partners, says: ‘We have completed this deal in the midst of a difficult regulatory environment and it is to the credit of all the parties involved that this project now has the investment it needs to go on to create jobs and power the local area. We appreciate the hard work of all those involved.’
Fuel for the plant will be sourced from the waste wood market and will be supplied by Stobart Biomass Products under a long-term, index-linked fuel supply contract.
The plant was developed by ECO2 and Temporis Capital, and will be managed by ECO2, which is experienced in developing, building, and operating UK biomass plants.
The construction contract has been placed with a consortium consisting of Babcock Wilcox Volund, who will also operate the plant, and Lagan Construction.