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FM2 waste-to-energy project first financing gig for GIG

Green Investment Group Ltd (GIG) has announced the arranging of a GBP 38 million (≈ EUR 41.37 million) financing for Wheelabrator Technologies, to be used for the construction of Ferrybridge Multifuel 2 (FM2) – a new, large-scale merchant energy-from-waste facility near Knottingley in West Yorkshire, UK. It is the first investment to be completed following the acquisition of the Green Investment Bank by a Macquarie-led consortium August 18.

According to a statement, the investment is part of a GBP 207 million (≈ EUR 225.38 million) senior debt facility from a syndicate of lenders including MUFG, Crédit Agricole Corporate & Investment Bank, Investec Bank plc and Banco de Sabadell S.A. that will fund Wheelabrator Technologies’ stake in FM2.

This first transaction under Macquarie ownership builds upon our well-established investment strategy. Working with Wheelabrator Technologies, we have helped finance the construction of major new energy infrastructure in West Yorkshire and facilitated the continued growth of the UK merchant energy-from-waste market, said Edward Northam, Head of the Green Investment Group (GIG).

Once operational, the ~70 MWe facility will generate electricity for UK homes and businesses. It is also expected to reduce greenhouse (GHG) emissions and divert waste from going to landfill. The project is being built by Multifuel Energy Ltd (MEL), a 50:50 joint venture between Wheelabrator Technologies and power utility SSE plc.

FM2 will be located adjacent to Ferrybridge Multifuel 1 (FM1), which commenced commercial operations in July 2015 and reached its first one million tonnes of waste processing in February 2017, next to the recently decommissioned Ferrybridge C coal-fired power station. Combined, the FM1 and FM2 plants will form the largest energy-from-waste site in the UK.

The key measure of GIG’s success will be in making or arranging new investments. We have set ourselves an ambitious target of leading GBP billion (≈ EUR 3.27 billion) of investment in green energy projects over three years and the completion of this transaction under Macquarie ownership is our first step, said Mark Dooley, Head of Energy and Infrastructure, Macquarie Capital Europe.

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