CoGen has closed financing for Ince Bio Power, the 21.5 MW Waste Biomass project at Protos, in Cheshire (UK).
The plant, which will qualify for 1.8 Renewable Obligation Certificates (ROCs) for the first 19 plus years of its lifespan, uses an Advanced Conversion Technology (ACT) process to convert c.170,000 tonnes per annum of recovered waste wood into clean renewable energy
The electricity produced will be purchased by nPower under a long-term power purchase agreement (PPA), whilst the recovered waste wood will be supplied under a long term contract by Ince Park Renewables.
The total project investment is estimated at £100 million (US$154.1 million). Ince Bio Power is the first of a pipeline of CoGen projects to be fully financed in an all-equity transaction by Bioenergy Infrastructure Group (BIG), the recently announced waste infrastructure investment platform comprising stakeholders Infracapital, Aurium Capital Markets, Foresight Group and Helios.
Construction has commenced on the site, with MBV Energy, a joint venture between MWH Treatment and Black & Veatch, appointed as EPC contractor, with Outotec Energy Products being the main technology subcontractor and with MWH Treatment appointed as O&M Contractor. The plant is expected to export its first power in 2017.
A group of advisors have assisted CoGen on the Ince Bio Power project with Legal Advice provided by Ashfords (acting for the project) and Pinsent Masons (acting for investors), Technical Due Diligence by Royal Haskoning, with Financial Modelling Services provided by Francis Clark LLP, BDO (financial model audit), Wood feedstock market and supply chain evaluation by Anthesis LRS, Insurance Provision by Arthur J. Gallagher and Insurance Due Diligence by Aon.
David Pike, Chairman of CoGen said:
"The closure of this major project, following closely after Welland Bio Power and Dartmoor Bio Power earlier this year confirms my belief in the CoGen team and what CoGen is striving to achieve. Special thanks goes to all who have supported CoGen (BIG and Ashfords in particular) during this process."
Ian Brooking, Chief Executive of Cogen said:
"It is great to get a complex project of this significant size through financial close. We are delighted to be partnering with Bioenergy Infrastructure Group and are excited to be working with them going forward to deliver multiple similar projects. CoGen has a significant pipeline of projects coming through and is now firmly established as the Major Player in Advanced Gasification in the UK."
Hamish McPherson, Chief Executive Officer of BIG, said:
"We are delighted that the financial close of Ince Bio Power project coincided with the launch of Bioenergy Infrastructure Group which we hope will soon become established as a leading player in the sector."
The Ince Bio Power project is the fourth such Biomass power project by developer CoGen and follows the projects of Birmingham Bio Power in the West Midlands, Welland Bio Power in Northamptonshire and Dartmoor Bio Power in Plymouth.