Glennmont Partners has acquired, for £160 million (US$247.2 million), the Port Clarence Energy project located on the banks of the River Tees in North East England.
The project began two years ago and was jointly developed by Eco2 Ltd and Temporis Capital LLP. It will provide 40 MW of renewable energy to the UK energy market through the combustion of waste wood, and will have the capacity to consume circa. 250,000 tonnes of waste wood per year.
The power station is to be financed with equity from a fund managed by Glennmont Partners and debt arranged and provided by Deutsche Bank and Danske Bank, supported by EKF, the export credit agency of Denmark.
The waste wood used to fire the power station will be diverted from landfill sites. The feedstock will be provided by Stobart Biomass Products Limited; specialists in the provision of renewables logistics.
The plant will be built by Babcock & Wilcox Vølund A/S with the civil engineering to be undertaken by Lagan Construction. It will be managed on behalf of its owners by Eco2 Management Services Ltd, making it the fifth biomass facility managed by the company.
CEO of Eco2 Ltd, David Williams said:
“Successfully completing this sale is testament to the calibre and dedication of the Eco2 team, who I am proud to say have worked tirelessly to achieve success in this difficult economic climate.”
“Over the last two years alone, we have raised a total of around £0.75 billion through the sale of four biomass plants, and as a team have amassed unrivalled experience in the development, construction and operation of over 510 MW of biomass projects throughout the world.”
Darren Williams, Eco2’s Commercial Director commented:
“The Port Clarence Energy Project is a fantastic example of an indigenous renewable energy project providing local supply chain benefits to the area. Attaining the financing to make this project happen will have a significant impact on the locale, by bringing an empty brownfield site back into production and creating jobs. ”
“This is the third project that we have completed with the partners at Glennmont over a six year period, and yet again, we are proud to be managing the construction and operation of this development on behalf of its new owners. It also reinforces our working relationship with Babcock Wilcox Volund A/S who have proved to be extremely professional and competent in everything they provide.”
David Watson, Chief Executive of Temporis Capital LLP, said:
“This project will have a significant positive impact on one of the most economically deprived areas of Britain. We have taken an empty brownfield site and laid the foundations for it to be turned back into production, creating hundreds of jobs. We are delighted with the backing that has been shown to this development by the local authority, Stockton-on-Tees Borough Council, and local land-owner Able Group.”