UK biomass CHP project achieves financial close

Date: 02/10/2015

A 27 MW biomass-fired combined heat and power (CHP) plant in the UK has successfully reached financial close.

The £138 million ($209 million) Cramlington project in Northumberland (pictured, artist’s rendition) will be fuelled with sustainable forestry by-products sourced from the local area, lenders’ technical advisor Mott MacDonald said in a statement. The steam cycle is planned to include a reheat stage, typically only seen on larger projects and designed to deliver enhanced efficiency.

When completed, the plant will provide power and heat to several adjacent pharmaceutical businesses.

Mott MacDonald is working on behalf of Barclays Bank PLC, which is also providing £90 million in financing. The scheme represents Barclays’ first biomass deal in the UK.

Technical and environmental reviews have now been completed, Mott MacDonald said. The firm will now monitor the construction until the project’s planned completion date in 2017.

Nick Escott, Mott MacDonald’s project director, said: ‘Our low carbon advisory team has thoroughly analysed the technical, environmental and commercial aspects of this project and is delighted that our advice has helped the project reach financial close. Mott MacDonald has strong expertise in guiding, advising and supporting these types of projects and we look forward to continuing our role as the project moves into the construction phase.’

Source: COSPP