Macquarie to support 299 MW Teesside renewable energy biomass plant

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Macquarie to support 299 MW Teesside renewable energy biomass plant

Macquarie Capital has announced its support in the financing of MGT Power's 299 MW Teesside biomass plant in the UK.

With a total project investment cost of £650 million (US$1 billion), MGT Power and Macquarie Capital are targeting financial close for the last quarter of 2015.

All major construction and operation permits have been secured by MGT Power and Macquarie Capital has started a debt raising process.

To be fueled by wood pellets and chips, the project will have a generating capacity of 299 MW and will save roughly 1.2 million tonnes of CO2 per year by displacing a mix of coal and natural gas from UK generation.

The project, which has received a government-supported Contract for Difference (CfD), will be the largest dedicated biomass project in the UK and receive all of its fuel from certified sustainable forestry sources in the USA and Europe.

Ben Elsworth, MGT Power's CEO, has commented:

"Following the sanction by the European Commission of the project’s CfD earlier this year, the involvement of Macquarie as an investor and adviser represents another major step forward in the process to finance the project with the aim of starting construction on site by early 2016 at the latest."

IPP Journal has recently been heavily reporting on Macquarie's moves:

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