Waste to energy
Announcements prior to September 2017, including this announcement, occurred under previous ownership.
23 March 2015
UK Green Investment Bank plc (GIB), Foresight Group and Zouk Capital LLP have today announced equity investments in the construction of the £111 million Levenseat Renewable Energy Limited 12.3 MWe energy from waste (EfW) plant and adjacent Materials Recycling Facility (MRF) at Forth by Lanark, Scotland.
GIB’s £28.25m investment was made via UK Waste & Resource & Energy Investments (UKWREI), the Foresight-managed fund, in which GIB is a cornerstone investor. This is the eighth investment made by the fund which has now fully deployed £78m having mobilised capital in excess of £350m.
The project is also backed by an equity investment from Levenseat Limited and senior debt from Investec Bank plc.
This will be the first time a UK plant has combined fluidised bed gasification technology with Refuse Derived Fuel (RDF), processed by the MRF.
The MRF will recover plastics, metals, paper and card for recycling. The project is forecast to recycle over a million tonnes of materials over its lifetime and will generate the heat required by the MRF.
The development is also forecast to supply electricity equivalent to the needs of nearly 18,000 homes over its expected 25-year lifespan. It is also expected to save 1.4 million tonnes of waste from going into landfill and deliver a reduction in greenhouse gas emissions of around 1.3 million tonnes, equivalent to taking over 23,000 cars off the road for every year it operates.
The electricity will be supplied to the national grid with the heat output assisting the operation of the MRF. It will create more than 100 jobs during the construction phase and support 50 full-time jobs when complete.
The MRF is expected to become operational in January 2017, with the complete plant commencing operations in June of that year. Given its location near the centre of the M8 corridor, the facility will be well placed to process household waste from several local authorities and commercial waste from the Glasgow and Edinburgh regions.
M+W Group has been appointed main (EPC) contractor for the project.
Shaun Kingsbury
Chief Executive, UK Green Investment Bank
Colin Campbell
Managing Partner, Zouk Capital LLP
James Samworth
Director, Foresight Group
Peter MacLaren
Director, Levenseat
Neil Bennett
Sector Lead Waste to Energy, M+W Group
About the project
Total project value: £111m
Total GIB indirect investment: £28.25m equity
Investors: GIB, Zouk Capital, Levenseat Limited
Environmental impact: recovery and recycling of over a million tonnes of materials over its lifetime, reduction in lifetime greenhouse gas emissions of over 1,300,000 tonnes, equivalent to taking over 23,000 cars off the road
Energy generation: 75 GWh of electricity produced per year
Feedstock supply: from adjacent MRF facility with capacity to process 215,000 tpa
Developer: Levenseat Renewable Energy Holdings Limited
EPC Contractor: M&W Group
Technology Provider and O&M Operator: Outotec Energy Products
Media enquiries
About Foresight
Foresight Group has been managing investment funds on behalf of institutions and retail clients for 30 years. With a background in Private Equity and Venture Capital, Foresight has diversified activities and today manages institutional funds principally in European Infrastructure (Solar and PPP), Environmental and UK small cap Private Equity, including six years of specific Infrastructure experience.
Foresight has in excess of £1.3bn assets under management and boasts one of the UK’s leading environmental infrastructure investment teams. It is responsible for managing approximately £250m of environmental assets which include the £78m UKWREI Fund which has now reached full deployment and the recently announced £50m Recycling and Waste (RAW)] mandates which will target waste and recycling projects up to £30m in size. Both funds cornerstoned by the UK Government’s Green Investment Bank for UK environmental infrastructure. Foresight also manages the £60m Foresight Environmental Fund (FEF).
About UKWREI Fund
About Zouk Capital LLP
Zouk Capital is a private equity and infrastructure fund manager investing in the clean economy. Zouk’s distinctive dual-track strategy of Growth Capital and Infrastructure capitalises on the investment opportunities created by the global shift to greater resource efficiency.
Zouk’s Infrastructure investment funds finance the construction of new high-yielding assets, by acquiring, developing and funding infrastructure projects during the late-stage of development and investing across a broad range of renewable energy and environmental sectors, including distributed energy, energy efficiency, storage, waste to energy and geothermal.
The Growth Capital funds invest in companies that enable a more intelligent use of resources across sectors such as IT and communications management, industrial goods and services, energy and transport and logistics. Zouk has invested in the clean economy since 2000 and is one of the largest fund managers of its strategy in Europe. Zouk has €600m under management and offices in London and Singapore.
About Levenseat Ltd
Levenseat is a Recycling and Waste management company based in Central Scotland. Established in 1986, the company combines over 25 years of industry experience with the latest technologies to deliver a bespoke recycling and resource management service to each and every customer.
About Investec Bank plc
Investec Project and Infrastructure Finance, part of Investec Bank plc advises, structures, arranges and provides financing options across a wide range of specialist infrastructure sectors. A global team of over 50 dedicated staff specialises in the power and transport and social infrastructure sectors. The team is part of Investec’s Corporate and Institutional Banking division.
Investec Export and Agency Finance arranges financing for energy, resources, transport and telecom projects, with a focus on power and aviation. As a project developer and lessor in its own right, Investec brings a unique perspective to the Export Finance market with a first-hand understanding of the challenges clients face in mobilising investments including equity, mezzanine and senior debt financing.
Investec is an international, specialist banking group providing a diverse range of financial products and services to a client base in three principal markets, the United Kingdom, South Africa and Australia, as well as certain other geographies.
About M+W Group
M+W Group is an international design, engineering and construction company. Established in 1912 in Stuttgart, Germany it now operates in over 30 countries worldwide. The company specialises in the delivery of major, complex projects in technology-led industry sectors in energy and environmental technologies, life science and chemicals, IT and electronics.
With annual sales in 2014 excess of 2 billion euros and with over 7000 employees the company is a recognised global leader in the construction of facilities that require the highest levels of technical skill. From design and engineering services to complete turnkey construction, M+W Group is able to offer the full range of contracting services.
For more information please visit: www.mwgroup.net.