UK Green Investment Bank, Foresight and Zouk Capital invest in Scottish waste deal

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UK Green Investment Bank, Foresight and Zouk Capital invest in Scottish waste deal

UK Green Investment Bank plc (GIB), Foresight Group and Zouk Capital LLP have announced equity investments in the Levenseat Renewable Energy Limited project in Scotland.

The project involves the construction of the £111 million (US$165.7 million) Levenseat Renewable Energy Limited 12.3 MWe energy from waste (EfW) plant and adjacent Materials Recycling Facility (MRF) at Forth by Lanark, Scotland.

GIB's £28.25 million (US$42.2 million) investment was made via UK Waste & Resource & Energy Investments (UKWREI), the Foresight-managed fund, in which GIB is a cornerstone investor. This is the eighth investment made by the fund which has now fully deployed £78 million having mobilised capital in excess of £350 million.

The project is also backed by an equity investment from Levenseat Limited and senior debt from Investec Bank plc.

This will be the first time a UK plant has combined fluidised bed gasification technology with Refuse Derived Fuel (RDF), processed by the MRF. The MRF will recover plastics, metals, paper and card for recycling. The project is forecast to recycle over a million tonnes of materials over its lifetime and will generate the heat required by the MRF.

The development is also forecast to supply electricity equivalent to the needs of nearly 18,000 homes over its expected 25-year lifespan. It is also expected to save 1.4 million tonnes of waste from going into landfill and deliver a reduction in greenhouse gas emissions of around 1.3 million tonnes.

The electricity will be supplied to the national grid with the heat output assisting the operation of the MRF.

The MRF is expected to become operational in January 2017, with the complete plant commencing operations in June of that year. Given its location near the centre of the M8 corridor, the facility will be well placed to process household waste from several local authorities and commercial waste from the Glasgow and Edinburgh regions.

M+W Group has been appointed main engineering, procurement and construction (EPC) contractor for the project.

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