Wheelabrator Technologies has reached financial close on the 675,000 tonnes per year Ferrybridge Multifuel 2 (FM2) energy-from-waste facility in West Yorkshire – the second project in the Multifuel Energy Ltd (MEL) partnership with SSE.
“This financial close is another major milestone for our 50:50 joint venture partnership with SSE to build and operate new energy-from-waste projects,” said Wheelabrator President and CEO Robert Boucher.
“We look forward to a long-term partnership with SSE and remain committed to investing in new long-term waste infrastructure across the UK, providing local and regional solutions to waste management and clean energy generation.”
Ferrybridge Multifuel 2 is an energy-from-waste facility that will generate ~ 70 MW (net) of “clean, sustainable electricity to power UK homes and business”, Wheelabrator says.
“We look forward to a long-term partnership with SSE and remain committed to investing in new long-term waste infrastructure across the UK, providing local and regional solutions to waste management and clean energy generation.”
The first project in the MEL partnership, Ferrybridge Multifuel 1, a 675,000 tonnes per year energy-from-waste facility co-located in West Yorkshire, has been operational since 2015.
Progress to reach financial close on Wheelabrator’s £207m share of the Ferrybridge Multifuel 2 construction project follows the award of planning consent by the Secretary of State in October 2015 with an environmental permit being granted by the Environment Agency one month later.
Fuel for the Ferrybridge Multifuel 2 facility will be supplied by a number of major waste management companies through long-term fixed price contracts.
Construction on Ferrybridge Multifuel 2 commenced in August 2016 and plant operations are expected to begin in Q3 2019. Now, one year into its three-year construction phase, the facility is creating hundreds of additional jobs in the local area and dozens of local supply chain opportunities. Once operational, the facility is expected to create 47 new, full-time operational roles.
SSE’s Director of Business Development Sandy Honeyman said, “Following the successful working partnership between SSE and Wheelabrator Technologies on the Ferrybridge Multifuel 1 project, we welcome the opportunity to continue the partnership and complete construction of the Ferrybridge Multifuel 2 project, which has progressed well over the past 12 months.”
Green Investment Group
The recently-bought Green Investment Group Limited (GIG) arranged the £38m financing for Wheelabrator Technologies, to be used for the construction.
The £38m 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).
“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.”
The investment is part of a £207m 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.
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 £3bn of investment in green energy projects over three years and the completion of this transaction under Macquarie ownership is our first step.”
