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Bioenergy Infrastructure Group closes on second UK energy-from-waste project

Bioenergy Infrastructure Group (BIG), a recently established platform to invest and operate biomass plants in the United Kingdom (UK), has announced that it has reached financial close on its second Energy-from-Waste (EfW) project. Energy Works Hull is a GBP200 million (≈ EUR 284.4 million), 25 MWe plant, on a 7.5-acre industrial site in Hull, East Yorkshire.

Bioenergy Infrastructure Group (BIG) was established in October 2015 by cornerstone investor Infracapital, alongside shareholders Helios, Aurium and Foresight Group, to become the leading power producer in UK biomass.

Launched in October, along with the announcement of its first project, the 21.5 MWe Ince Biopower waste wood to energy plant in Cheshire, this second project is, the company says, “indicative of the momentum behind the Group’s strategy to develop a portfolio of biomass assets, with the associated operational and financial synergies therein, establishing BIG as a leading player in the UK biomass industry.”

This deal has been sourced from BIG’s exclusive pipeline of EfW projects, with multiple further opportunities expected to be developed over the next two years.

We are extremely satisfied by the progress made to date by BIG, which demonstrates Infracapital’s ambition and focus on greenfield development in the UK. The biomass project pipeline is itself indicative of the range of greenfield investment opportunities across the UK and Europe, and we are delighted to be supporting investment in projects that are beneficial to both the economy and the environment, said Andy Matthews, Greenfield Director, Infracapital.

First financial close with CfD

The plant, to be named Energy Works Hull, will be controlled by BIG. It has already secured offtake agreements with a 15 year Power Purchase Agreement (PPA) and a 15-year Contract for Difference (CfD) – the first waste to energy project to achieve financial close with a CfD.

M+W Group has been selected as engineering, procurement and construction (EPC) contractor and the project has a 10-year operations and maintenance (O&M) agreement with Cofely Ltd.

This investment exemplifies Helios III’s commitment to Distributed Power Generation in the UK, and the project is a great addition to BIG’s portfolio, positioning BIG as an IPP with a diversified fuel supply strategy, world-class contractors, strong offtake agreements, and strategic commitment from its four shareholders, said Erez Gissin, Founding Managing Partner, Helios.

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