Waste and bioenergy
Announcements prior to September 2017, including this announcement, occurred under previous ownership.
21 September 2015
UK Green Investment Bank plc (GIB) and John Laing Group plc have committed £48m of equity to a new £138m renewable energy facility in North East England, developed by Estover Energy.
The biomass Combined Heat and Power (CHP) plant in Cramlington, Northumberland, will generate 213 GWh of renewable electricity annually – enough to power 52,000 homes. It is also expected to reduce greenhouse gas emissions by circa 56 kt CO2e annually, the equivalent of taking 25,000 cars off the road during its lifetime.
Much of the generated electricity will be purchased by Statkraft under a long-term Power Purchase Agreement (PPA), but the area’s thriving pharmaceutical sector, recognised as an essential element of the North East economy, will benefit from its output.
Electricity will be supplied to local businesses operating in the adjacent industrial estate, namely Aesica Pharmaceuticals and MSD. The plant will also have the potential to provide renewable heat to neighbouring facilities.
GIB will make a £21m investment in the project, with John Laing investing in a stake worth £27m. Barclays will provide the remainder of the funding as debt, 60% of which will be guaranteed by the Danish export credit agency EKF.
The construction of the plant will be undertaken by a consortium of Burmeister & Wain Scandinavian Contractors A/S (BWSC), the consortium leader, and Burmeister & Wain Energy A/S (BWE). BWSC will operate the plant upon completion under a 12-year Operations & Maintenance contract. Up to 25 permanent positions will be maintained at the operational facility, with further jobs created within the project supply chain.
Fuel for the plant will be provided by local growers and forest industry suppliers.
Ed Northam
Head of Investment Banking at the UK Green Investment Bank
Ross McArthur
Managing Director of Renewable Energy for John Laing
Marcus Whately
Founder and Co-CEO at Estover Energy
Nial Gemmell
Director at Barclays Bank
Total GIB share of investment: £21m
Total capital mobilised: £138m
Co-investors: John Laing, Barclays
Expected completion: Late 2017/early 2018
Developer: Estover Energy
EPC contractor: Consortium of BWSC and BWE
O&M operator: BWSC
Advisers to GIB: Pinsent Masons, Operis
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About John Laing
John Laing is an international originator, active investor and manager of infrastructure projects. Its business is focused on major transport, social and environmental infrastructure projects awarded under governmental public-private partnership (PPP) programmes, and renewable energy projects, across a range of international markets including the UK, Europe, Asia Pacific and North America.
About Estover Energy
Estover Energy is a UK-based developer, investor and manager of sustainable power and infrastructure projects. With a track record in developing large renewable energy infrastructure projects, Estover seeks to help meet the energy challenges of the next decade – energy security, the energy gap and climate change.
Estover develops from inception through to financing and eventual operation, medium to large scale infrastructure projects.