Macquarie and PKA close financing for biomass project in the UK

Subscribe to our newsletter and get the latest news and business opportunities in your inbox
Macquarie and PKA close financing for biomass project in the UK

Macquarie and Danish pension fund PKA have reached financial close on £900 million (US$1.2 billion) of total funding for the Tees Renewable Energy Plant (Tees REP), a 299 MW biomass combined heat and power plant. 

Macquarie will own 50 per cent of the equity in the project, and PKA will own the remaining 50 per cent stake. The project was initially developed by MGT.

As we reported in July 2015, Macquarie Capital also acted as financial advisor raising more than £650 million of senior debt. Linklaters advised the lenders on the multi-source financing of the project. The names of the lenders have not been released.

The project will be built under an EPC contract by a consortium of Spain's Tecnicas Reunidas and Samsung C&T of South Korea.

Mark Dooley, Head of Infrastructure, Utilities and Renewables, Macquarie Capital Europe commented:

"'We are delighted that our partnership with MGT Power will enable the delivery of this important project for the economy of North-East England. This project demonstrates the commitment and flexibility of Macquarie in delivering capital and advice to clients at all stages of their business or project evolution. Macquarie Capital has invested more than €1.2 billion in European renewables projects valued at over €4.7 billion over the past three years demonstrating our ongoing commitment to the sector."

Matt Booth, Managing Director, Macquarie Commodities and Financial Markets, commented:

"Macquarie has a long track record of providing development and later stage capital to the energy and commodities sectors. We work with our clients to help them grow and develop their businesses and are pleased to have been able to contribute to the success of this important project."

Ben Elsworth, CEO of MGT Teesside added:

"The Tees REP project had to overcome many hurdles and Macquarie's involvement was critical to this successful outcome, as was the support of MGT's committed shareholding group including majority shareholder Capeview Capital. This has been a huge team effort from many different parties over a long period, and we are proud to be delivering a project which is not only low carbon but which will meaningfully add to the UK's energy security at an important time."

Share this news

Join us

In order to get full access to News section, you must have a full subscription. You can check all the benefits of becoming a member and purchase a subscription on our membership page.