Glennmont Partners has completed the 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, in a GBP160m deal.
The Port Clarence Energy Project will see a new biomass power generation plant built at Port Clarence, Stockton-on-Tees, providing 40 MW of 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 EKF, the export credit agency of Denmark.
The completion of this transaction is a significant step towards the full investment of Glennmont’s Clean Energy Fund Europe II into a portfolio that benefits from diversification across technologies and geographies. Glennmont’s second fund 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 (pictured), CEO of Glennmont Partners, says: “We are delighted to bolster our biomass presence in Europe which now amounts to nearly 120MW across three sites. This deal consolidates our position as the UK’s pre-eminent investor in, and operator of, dedicated biomass plants and demonstrates to investors our commitment to keep building on our portfolio.
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.”
Michael Volkermann, Head of Infrastructure and Energy Finance for EMEA at Deutsche Bank, says: “We are delighted to be involved in another important project in this sector for Glennmont Partners and their development, construction and supply chain consortium.”
Simon Sayer, Head of Structured Trade & Export Finance EMEA at Deutsche Bank, says: “We greatly appreciate the participation of EKF in working with us on this transaction and look forward to continuing our partnership with EKF in financing renewable energy projects around the world.”
Kim Richter, Senior Director for SME & Cleantech at EKF (Eksport Kredit Fonden), says: “EKF is pleased to help Babcock Wilcox Volund A/S secure the contract for the Port Clarence plant. It is Babcock Wilcox Volund A/S’s second biomass plant in the UK in 2015 with EKF financing.. The project fits very well with EKF’s continued commitment to support renewable energy projects based on Danish technology. We have been very pleased working with the professional partners involved in making this project possible.”
Fuel for the plant will be sourced from the waste wood market and will be supplied by Stobart Biomass Products Limited under a long-term, indexed-linked fuel supply contract.
The plant was developed by ECO2 Ltd. and Temporis Capital, and will be managed by Eco2 Ltd which has unique experience in developing, building and operating UK biomass plants.
The construction contract has been placed with a consortium consisting of Babcock Wilcox Volund A/S, who will also operate the plant, and Lagan Construction.
