Green Investment Group (GIG), the specialist green energy project developer and investor, and Covanta, the world’s leading energy-from-waste (EfW) owner and operator, today announced financial close on the acquisition of a 50 per cent stake in the Earls Gate Energy Centre (EGEC). EGEC is a 21.5 MWe EfW facility located in Grangemouth, Scotland.
- Financial close reached on the Earls Gate Energy Centre (EGEC), a combined heat and power energy-from-waste facility in Grangemouth, Scotland
- EGEC will prevent 216,000 tonnes of household and commercial waste from entering landfill each year
- Project will provide heat and power to local industry, including chemical manufacturer and site utility service provider, CalaChem
A combined heat and power project, EGEC will prevent 216,000 tonnes of mixed household, commercial and industrial waste from entering landfill per annum. Instead, the waste will be converted into 79GWh of green electricity and 81GWh of heat in the form of steam each year. Working closely with co-investor and developer Brockwell Energy who own the remaining 50 per cent stake, the facility will become a direct source of reliable, green, low-cost energy for local businesses located at Earls Road.
Chemical manufacturer and site service provider, CalaChem, has entered into a long-term Energy Supply Agreement (ESA) for the offtake of electricity and steam produced by EGEC. The steam will be used in the manufacturing processes of CalaChem and others on site. The ESA is expected to decarbonise CalaChem’s annual energy consumption by approximately 39kt CO2e per year – the equivalent of taking approximately 17,000 cars off the road for a year. The remaining electricity will be exported to the grid.
EGEC is GIG’s nineteenth Scottish project, and follows a range of investments supporting sustainable economic growth in Scotland. By preventing volumes of waste equivalent to around 20 per cent of Scotland’s total landfilled household waste in 2017 from going to landfill, the facility will make a significant contribution to the local authority’s ability to achieve the goals of Scotland’s biodegradable municipal waste landfill ban, which is due to come into effect on 1 January 2021 .
Construction is due to commence in 2019 and is anticipated to become operational in late 2021, creating up to 500 jobs during construction. The total project value is approximately £210 million.
Edward Northam, Head of GIG Europe:
For the first time ever, 2017 saw Scotland recycle more waste than it sent to landfill. This is a fantastic achievement, but there remains a lack of capacity in Scotland’s waste management system to unlock the value to businesses and households from converting residual waste into low-carbon energy. The Earls Gate facility will play a major role in changing that.
GIG is very proud of its Scottish roots and base in Edinburgh. Earls Gate is our nineteenth investment in Scotland to date, and we’re delighted it will help secure a reliable, low-cost, green heat and power supply for local industry, further supporting the decarbonisation of the Scottish economy.”
Neil Partlett, Chief Executive Officer of CalaChem:
CalaChem has been a part of Grangemouth industry for almost 100 years. Electricity and heat are both vital to the operations of CalaChem and the other companies based on our Earls Gate Park. In addition to improved environmental performance and operational reliability, the new Earls Gate Energy Centre will also enhance CalaChem’s international competitiveness by controlling overall energy costs. This will help secure jobs, meaning CalaChem remains a valuable economic asset to the region. We are very excited that the project has reached this milestone and look forward to construction commencing shortly."
Matthew Mulcahy, Covanta’s Executive Vice President and Head of Corporate Development:
Today marks a significant milestone in our valued partnership with GIG, as Earls Gate represents the first of our four advanced UK development projects to reach financial close. The project is well-structured with long-term contracts on both waste and energy and will provide critical sustainable waste disposal capacity in Scotland. It will also greatly benefit the local economy by supplying neighboring industry with reliable, low-carbon heat and power."
Alex Lambie, Brockwell Energy’s Chief Executive Officer:
The success of EGEC reflects the skills and dedication of the Brockwell and GIG teams and delivers a new world-class renewable CHP facility to support the site. This is the first of a number of EfW projects that we will build over the next three years. As one of the most efficient plants in the UK, EGEC has unparalleled environmental credentials. The use of heat and power on-site will future-proof full-time local jobs. It will also create roles during construction, including a range of professional, skilled and entry-level positions and apprenticeships.”
Download a copy of the Green Impact Report
 Based on SEPA’s Waste Landfilled in Scotland 2017 figures.
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About Green Investment Group and Macquarie Group
Green Investment Group Limited (GIG) is a specialist in green infrastructure principal investment, project delivery and the management of portfolio assets, and related services. Its track record, expertise and capability make it a global leader in green investment, dedicated to supporting the growth of the global green economy.
The business was launched initially by the UK Government in 2012 as the first institution of its type in the world. The organization was acquired by Macquarie Group in 2017, creating one of Europe’s largest teams of dedicated green infrastructure investors, and now operates under the name Green Investment Group.
Macquarie Group Limited (Macquarie) is a diversified financial group providing clients with asset management and finance, banking, advisory and risk and capital solutions across debt, equity and commodities. Founded in 1969, Macquarie employs 14,469 people in over 25 countries. At 31 March
2018, Macquarie had assets under management of £309.9 billion. For further information, visit www.macquarie.com.