SIMEC Atlantis Energy has entered into an exclusive debt financing agreement with South Korean financial firm Hana Financial Investment Co (HFI) to work on the Uskmouth conversion project.
The two companies will collaborate to fund 100% of phase one (110 MW) of the Uskmouth conversion project through a senior secured loan to SIMEC Uskmouth Power (SUP). The Uskmouth project is developing waste-derived fuel pellets and has tested the alternative fuel with Mitsubishi Hitachi Power Systems Europe.
The facility, if agreed, will provide up to £170 million (€188 million) towards capital and development expenditure, operating costs, fees, and interest. It will also provide an equity bridge loan, throughout construction. HFI and SUP will work closely to refine the financing package over the remaining period to financial close.
Tim Cornelius, CEO of SIMEC Atlantis Energy, said: “We are delighted to enter into this agreement with HFI and are looking forward to working closely with them to achieve financial close on our flagship project.
“HFI is a market leader and not only one of the largest financial groups in Korea but a global investor and one we are proud to work alongside.
“This agreement with HFI reflects the high level of international interest our world-leading conversion project has and we believe that this is a stepping stone to further conversion opportunities across Asia and indeed globally.”