Kedco progresses with London biomass plant
Kedco, a UK-focused renewable energy developer and operator, is building a 12MW biomass CHP plant in Enfield, north London and has appointed Foresight Group as the preferred funding partner for the project.
Kedco has signed a non-binding heads of terms with Foresight, an independent private equity, infrastructure and environmental investor, for the provision of debt and equity facilities which will part finance the construction and operation of the facility.
As part of the financing structure, a co-investor will be required to invest alongside Foresight funds. Kedco will retain a substantial equity participation in the project and will not be required to invest any further funds on financial close.
It is intended that Foresight will part fund the project through its existing funds, which includes the Foresight Environmental Fund (FEF). The FEF was corner stoned by the London Green Fund and has attracted investment from a number of private sector investors.
The heads of terms are subject to completion of due diligence, legal documentation and final investment committee approval.
Additionally, Kedco has also chosen Fichtner Consulting Engineers as technical advisers to the project. Fichtner will be responsible for managing the tender process for the EPC contract, as well as negotiations with the heat offtakers.
The tender process for the EPC contract has already begun and discussions with contractors are ongoing.
The company hopes to break ground on the biomass plant in the third quarter of this year after it has reached financial closure.