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Eversheds advises Glennmont Partners on £160 million biomass acquisition

  • United Kingdom

    25-09-2015

    Situated on the banks of the River Tees in North East England, the Port Clarence Energy Project has been sold to Glennmont Partners in a £160m deal. The project began two years ago and was jointly developed by Eco2 Ltd and Temporis Capital LLP.

    The project will provide 40MW 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.

    The project will be managed on behalf of its owners by Eco2 Management Services Ltd, making it the fifth biomass facility managed by the company.

    The Eversheds team was led by Indraj Mangat, Rob Mcnabb, James Trafford and Iwan Walters.

    Iwan Walters at Eversheds commented:

    “We are delighted to have closed our third project for Glennmont Partners having acted on the acquisition and project finance of this project in North East England. This project demonstrates yet again that there remains at the moment a strong appetite in the UK from investors for the acquisition of and project finance of clean energy assets.”

    CEO of Eco2 Ltd, David Williams said:

    “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 510MW of biomass projects throughout the world.”

    Darren Williams, Eco2’s Commercial Director commented:

    “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.”

    Disclaimer

    This information is for guidance purposes only and should not be regarded as a substitute for taking legal advice. Please refer to the full terms and conditions on our website.

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