Waste and bioenergy

GIB backs energy recovery facility in North Wales

15 Dec 2016

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UK Green Investment Bank plc (GIB) has today committed £35m of senior debt to the construction of Wheelabrator Parc Adfer, a new £180m energy-from-waste (EfW) plant at Deeside Industrial Park in Flintshire, North Wales.

Summary

  • £35m investment

    GIB is investing £35m in a new energy-from-waste plant in North Wales

  • 200,000 tonnes

    The plant will prevent up to 200,000 tonnes of non-recyclable waste being sent to landfill per year

  • 30,000 homes

    The facility is expected to generate enough electricity annually to power more than 30,000 homes

  • 21,000 tonnes

    The plant is forecast to help avoid greenhouse gas emissions equalling 21,000 tonnes every year


The lending club also includes Mitsubishi UFJ Financial Group (MUFG), Siemens Bank and Natixis, with Barclays providing an equity bridging loan.

The 18.8 MW facility, which has been developed by Wheelabrator Technologies Inc (WTI), is expected to prevent up to 200,000 tonnes of non-recyclable waste being sent to landfill every year.

The plant is forecast to generate approximately 133 GWh of electricity annually once operational – equivalent to the power needs of over 30,000 homes. It is also expected to help avoid greenhouse gas emissions equalling 21,000 tonnes per annum.

The facility is being built and operated under a public-private partnership (PPP) with five local authorities in North Wales:

Flintshire County Council; Isle of Anglesey County Council; Gwynedd Council; Conwy County Borough Council; and Denbighshire County Council.

It is anticipated that the mobilisation phase at the facility will commence imminently and construction will be complete by the end of 2019. Hundreds of jobs are anticipated to be created during construction, with the plant supporting 35 new, full-time positions once operational.

Constructions industrielles de la Méditerrańes S.A. (CNIM) has been awarded the engineering, procurement and construction (EPC) contract for the project. WTI will manage operations and maintenance (O&M) at the plant.


Edward Northam, Head of Investment Banking, GIB, said:

Parc Adfer is likely to be one of the last local authority waste PPP projects to reach financial close in the UK, bringing a 20-year programme to an end and ushering in a new era of waste infrastructure financing. Investors are already turning their attentions to the opportunities presented by new merchant infrastructure, which we believe could require up to £3.6 billion of additional funding by 2020.


Paul Green, Managing Director, WTI UK, said:

The Wheelabrator Parc Adfer facility is another example of our commitment to investing in new and necessary energy recovery infrastructure across the UK. We remain focussed on developing our pipeline for growth and building long-lasting relationships in the five North Wales authorities, as well as commercial waste companies across the UK. We’re committed to bringing our experience and industry expertise to Wheelabrator Parc Adfer, delivering a facility of the highest safety and operational standards.


Contacts

Ross Nisbet, UK Green Investment Bank: ross.nisbet@greeninvestmentbank.com / 03301 232 153


About the project

Total GIB share of investment: £35m
Total capital mobilised: £180m
Co-investors: Mitsubishi UFJ Financial Group (MUFG), Siemens Bank, Natixis and Barclays
Expected date of completion: End 2019
Developer: WTI
EPC contractor: Constructions industrielles de la Méditerranée S.A. (CNIM)
O&M: WTI


Notes to editors

About UK Green Investment Bank

UK Green Investment Bank plc (GIB) was launched in November 2012. With initial funding from the UK Government, it is the first bank of its kind in the world. It is a “for profit” bank, whose mission is to accelerate the UK’s transition to a greener economy, and to create an enduring institution, operating independently of Government.

GIB is wholly owned by HM Government. The Company is not authorised or regulated by the Financial Conduct Authority or the Prudential Regulation Authority. A wholly owned subsidiary UK Green Investment Bank Financial Services Limited, is authorised and regulated by the Financial Conduct Authority.

www.greeninvestmentbank.com

About WTI

Wheelabrator is the second largest US energy-from-waste business, and is an industry leader in the conversion of everyday residential and business waste into clean energy. The company’s vision To develop, deliver and realize the potential of clean energy speaks to Wheelabrator’s ongoing commitment to the development of clean energy solutions for its customers and local communities. Wheelabrator has a platform of 16 energy-from-waste facilities across the US and UK, four independent power-producing facilities, four ash monofills and three waste transfer stations.

Wheelabrator has an annual waste processing capacity of over 6.8 million tonnes, and a total combined electric generating capacity of 853 megawatts - enough energy to power more than 805,000 homes. In addition, Wheelabrator recovers metals for recycling into commercial products.

www.wtienergy.co.uk

Wheelabrator is owned by Energy Capital Partners, an energy-focused private equity firm with offices in Short Hills, New Jersey, Houston and San Diego.

www.ecpartners.com