Macquarie Capital and Macquarie Commodities and Financial Markets have reached financial close on £900m of funding for the 299MW Tees renewable energy plant in the northeast of England.
The biomass combined heat and power plant has been developed by MGT Power and will be the world’s largest new-build biomass plant when completed.
Construction is due to start imminently and the project is scheduled to be finished by 2020, Macquarie said.
It will own 50% of the equity in the project, with Danish pension fund PKA owning the remaining 50%.
Macquarie Capital also acted as financial advisor raising more than £650m of senior debt.
Macquarie developed the commercial and fuel supply arrangements for the plant and is also providing a long-term “route to market based” power purchase agreement.
Macquarie and MGT have been working together for more than 18 months on the project, with Macquarie having provided a development loan in mid-2015 to support MGT through the project’s later stage development.
A joint venture of Samsung C&T and Tecnicas Reunidas has a turnkey engineering, procurement and construction contract for the project.
Fortum has an operations and maintenance agreement, while a fuel supply deal has been made with Enviva Wilmington Holdings, a joint venture between an affiliate of Enviva Holdings and affiliates of John Hancock Life Insurance Company.
PD Ports will provide a dedicated berth for fuel deliveries as well as stevedoring services for the CHP plant.
Image: sxc
Macquarie seals Tees bio cash
Financial close reached on 299MW CHP plant in northeast of England
By EBS