Renewable Energy Generation Limited (REG) has signed a term loan facility agreement with Caterpillar Financial Services for the financing of its 18 MW Bio-Power plant at Whitemoor Business Park, near Selby in Yorkshire (UK).
The financing is for a total of £4.8 million (US$7.72 million) and has a seven year repayment term. The total project investment is estimated at £6.3 million (US$10.1 million).
The Whitemoor project is in the final stages of testing and is expected to be operational by the end of October. The project will be used principally to provide power under National Grid's Short Term Operating Reserve (STOR) service. The plant will utilise REG's patented LF100 fuel recovered from recycled waste cooking oil.
The EPC contract was awarded on 28 January 2014 to the consortium composed by Finning UK and Caterpillar Financial Services.
Andrew Whalley, Chief Executive Officer stated:
The completion of Whitemoor, the largest generating project REG has ever built, marks a sea-change in scale for the business.
We are delighted to be partnering with Cat Financial for the financing of the project, testament to the manufacturer's confidence in our technology and REG's patented LF100 fuel that we are using for the project.
The ten Cat® 3516 B-HD engines at Whitemoor are highly robust power plants in use globally. This is important as the plant will be providing a vital service in support of the electricity grid as the UK transitions to a lower carbon future.