Green Investment Group Limited (GIG) has announced the arranging of a £38 million financing for Wheelabrator Technologies, to be used for the construction of Ferrybridge Multifuel 2 (FM2) – a new, large-scale merchant energy-from-waste facility near Knottingley in West Yorkshire, United Kingdom.
The £38 million commitment is the first investment to be completed following the acquisition of the Green Investment Bank by a Macquarie-led consortium earlier this month (18 August 2017).
The investment is part of a £207 million senior debt facility from a syndicate of lenders including MUFG, Crédit Agricole Corporate & Investment Bank, Investec Bank plc and Banco de Sabadell S.A. that will fund Wheelabrator Technologies’ stake in FM2.
Once operational, the ~70 MW facility will generate electricity for UK homes and businesses. It is also expected to reduce greenhouse emissions and prevent waste going to landfill.
FM2 is being built by Multifuel Energy Ltd (MEL), a 50:50 joint venture between Wheelabrator Technologies and SSE plc.
It will be located adjacent to Ferrybridge Multifuel 1 (FM1), which commenced commercial operations in July 2015, and next to the recently decommissioned Ferrybridge C coal-fired power station. Combined, the FM1 and FM2 plants will form the largest energy-from-waste site in the UK.
Edward Northam, Head of the Green Investment Group, said:
This first transaction under Macquarie ownership builds upon our well-established investment strategy. Working with Wheelabrator Technologies, we have helped finance the construction of major new energy infrastructure in West Yorkshire and facilitated the continued growth of the UK merchant energy-from-waste market.
Mark Dooley, Head of Energy and Infrastructure, Macquarie Capital Europe, added:
The key measure of GIG’s success will be in making or arranging new investments. We have set ourselves an ambitious target of leading £3 billion of investment in green energy projects over three years and the completion of this transaction under Macquarie ownership is our first step.
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Notes to editors
About Green Investment Group Limited (GIG)
GIG is a specialist in green infrastructure principal investment, project delivery and portfolio management, 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 initially launched by the UK Government in 2012 as the Green Investment Bank, the first institution of its type in the world. The organisation was acquired by the diversified financial group Macquarie Group Limited in 2017, creating one of Europe’s largest teams of dedicated green infrastructure investors, and now operates under the name Green Investment Group.
For more information, visit www.greeninvestmentgroup.com.
About Macquarie Group
Macquarie Group (Macquarie) is a global provider of banking, financial, advisory, investment and funds management services. Founded in 1969, Macquarie employs more than 13,597 people in over 27 countries. At 31 March 2017, Macquarie had assets under management of £294 billion. For more information, visit www.macquarie.com.