News / Pensiondanmark to invest nearly 130m in UK biomass power plant

Pensiondanmark to invest nearly 130m in UK biomass power plant

🕔 August 16, 2013
US$3 billion final close for Macquarie Super Core Infrastucture Fund Series 1

Burmeister & Wain Scandinavian Contractor and PensionDanmark have joined forces to build, operate and own a brand  new biomass power plant in Lincolnshire, in the east of England. They have committed to the investment of a total of GBP 160 million via the BWSC PLC joint venture established by the two parties.

On 13 August 2013, Burmeister & Wain Scandinavian Contractor A/S and PensionDanmark formed a joint venture, BWSC PLC, which will build, own and operate power plants internationally.

The new power plant in Lincolnshire will have a capacity of 40 MW and will be primarily fuelled using  locally sourced straw.

BWSC's share of the investment in the new power plant is GBP 32 million and they will be  in charge of building, operating and maintaining the plant, which is expected to be  operational from early 2016.

BWSC is a global leader with more than 30 years' experience in developing, building and operating power plants, while PensionDanmark has specialised in direct investments in energy-related infrastructure. The BWSC PLC joint venture provides the necessary framework for establishing further new power plants in future.

Torben Möger Pedersen, CEO of PensionDanmark, said:

"We have found a model that provides PensionDanmark 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. We are looking forward to working with BWSC, whose established expertise meets our high standards for industrial partners in this type of joint venture."

PensionDanmark's share of the investment in the new power plant is GBP 128 million and will be funded via the Copenhagen Infrastructure I fund, which was established in 2012 and is administered by Copenhagen Infrastructure Partners (CIP). PensionDanmark is the sole investor in the fund with DKK 6 billion.

Source: Infrastructure Partners



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