New biomass power plant to be built in UK
PensionDanmark is to build, own and operate a new biomass-fired power plant in Lincolnshire, UK and has formed a joint venture with Burmeister & Wain Scandinavian Contractor (BWSC).
The £160 million (€187.5 million) Brigg Renewable Energy plant will use mostly locally sourced straw to generate 40MW of renewable electricity – enough for 70,000 homes. This will also result in an annual CO2 reduction of approximately 300,000 tonnes.
BWSC invested £32 million into the new project and is responsible for the construction, operation and maintenance of the plant, which is expected to come online in 2016.
'The financial crisis has challenged the success of Danish businesses exporting sustainable energy plants. Now, BWSC and PensionDanmark are forming a joint venture with the aim of building, owning and operating select biomass power plants internationally,' says Anders Heine Jensen, BWSC CEO.
PensionDanmark's CEO Torben Moeger Pedersen adds: 'We have found a model that provides us with an attractive return with limited risk. The risk is limited by the fact that the majority of PensionDanmark's investment is in the form of loans and the bulk of earnings are regulated, with the costs fixed via long-term contracts.'
The company's share of the investment in the new plant in £128 million and will be funded via the Copenhagen Infrastructure I Fund, which was established in 2012 and is administered by Copenhagen Infrastructure Partners.
The investment commitment was agreed on 8 August following the UK government's announcement regarding the UK Biomass Cap.