Foresight Group (Foresight) and the UK Green Investment Bank plc (GIB) have today announced a £30m investment in the construction of a new £60m advanced-technology Waste to Energy (WtE) gasification facility in Hoddesdon, Hertfordshire.
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- New £60m project to construct a 10 MWe advanced-technology merchant-waste gasification plant in Hoddesdon, Hertfordshire.
- Once operational the plant will produce enough renewable electricity to meet the annual needs of nearly 7,000 homes and cut carbon emissions equivalent to taking over 16,000 cars off the road.
- The plant equipment will be designed and manufactured by two UK based firms and the fuel will be supplied by two local UK contractors.
The project represents a new phase in the development of the UK waste market with advanced technology combined with a merchant waste supply. It will be the first commercial scale, Refuse Derived Fuel (RDF) gasification plant to be construction financed by third party investors.
The gasification technology, which will treat commercial and industrial waste, will be designed by Biomass Power Limited (based in Stafford), with Bouygues Energy & Services acting as EPC and O&M Contractor.
Over its lifetime, this state-of-the art gasification facility is forecast to:
- supply renewable electricity equivalent to the needs of more than 7,000 homes each year;
- deliver a lifetime reduction in greenhouse gas emissions of more than 900,000 tonnes, equivalent to taking nearly 16,000 cars off the road each year;
- increase the production of RDF feedstock, resulting in the increased pre-treatment and recycling of waste which is currently sent to landfill; and
- create up to 110 engineering, construction and project management jobs and 17 full time jobs once operational.
The 10 MWe plant, developed by AssetGen Partners, will be powered by more than 90,000 tonnes of RDF sourced from the commercial and industrial sectors and supplied by two of the UK’s leading established waste suppliers, Biffa and Powerday.
The plant is to be constructed 22 miles north east of London. Work on the plant will begin shortly and it is expected to begin operations in the first half of 2017.
GIB, through its fund manager, Foresight, is investing £30m in a combination of shareholder loans and equity with co-investors NOY and P3P providing £20m and £10m respectively on the same terms.
GIB’s investment through Foresight is in addition to the recently announced Recycling & Waste LP (RaW) fund, which will target smaller waste and recycling projects up to a total value of £30m.
Business Secretary, Vince Cable MP, said:
"This latest investment by the Green Investment Bank in a gasification plant in Hertfordshire will use technology and parts sourced from British companies and create more than 100 local jobs. Renewable energy is the future and when this plant is operational it will power over 7,000 homes each year. The Green Investment Bank is at the heart of our industrial strategy, creating sustainable long term jobs and growth.”
Shaun Kingsbury, Chief Executive, UK Green Investment Bank, said:
"This first-of-kind, high-technology waste facility signals a new phase in the UK waste management sector. The project is a great example of innovation driven by and backed up by some great UK companies.”
Minal Patel, Director at Foresight Group, commented:
"The Foresight team has worked over many months with our financing partners, our contractors and suppliers to structure and complete this landmark investment, which is the first project finance investment into a utility scale merchant waste RDF fuelled gasification project in the UK. This innovative facility will be making an important contribution to energy security at a national level and waste management at a local level.”
For further information, please contact:
Stephen Moir, Green Investment Bank: firstname.lastname@example.org / 0330 123 2129
Ben Thompson: Foresight Group: email@example.com / 020 3667 8155
About the project:
Total project value: £60.4m
Total GIB indirect investment £29.9m equity
Investors: GIB, NOY, P3P
Environmental impact: reduction in lifetime greenhouse gas emissions of over 900,000 tonnes, equivalent to taking over 16,000 cars off the road
Energy generation: over 60 GWh of electricity produced per year
Feedstock supply: More than 90,000 tpa supplied by Biffa and Powerday
Developer: AssetGen Partners
Engineering and Technology Provider: Biomass Power Limited
EPC and O&M Contractor: Bouygues E&S UK Ltd.
Notes to editors:
About the UK Green Investment Bank
The UK Green Investment Bank was launched in November 2012. With £3.8bn of funding from the UK Government, it is the first bank of its kind in the world. It is a "for profit" bank, whose mission is to accelerate the UK's transition to a greener economy, and to create an enduring institution, operating independently of Government.
Foresight Group has been managing investment funds on behalf of institutions and retail clients for 30 years. With a background in Private Equity and Venture Capital, Foresight has diversified activities and today manages institutional funds principally in European Infrastructure (Solar and PPP), Environmental and UK small cap Private Equity, including six years of specific Infrastructure experience.
Foresight has in excess of £1.3bn assets under management and boasts one of the UK’s leading Environmental infrastructure investment teams. It is responsible for managing approximately £150m of environmental assets which include the £68m mandate from the UK Government’s Green Investment Bank for UK environmental infrastructure. Foresight also manages the £60m Foresight Environmental Fund (FEF).