The UK Green Investment Bank and infrastructure investor Equitix have committed £25m to fund the 5.4MW Wrexham biomass plant in Wales.
Equitix-managed fund Energy Savings Investment, in which the GIB is a cornerstone investor, will provide £12.25m while £12.75m of private capital will come from the Equitix Energy Efficiency Fund, the bank said.
The facility in Wrexham Industrial Estate, developed by Green Plan Energy, will generate around 34GW of electricity per year, or enough for about 2,400 local homes.
It will be built by Spanish contractor Bester Generacion, which will start construction soon.
The power generated will be sold to ENGIE under a long-term power off-take agreement.
In addition, the facility also has the potential to provide heat to neighbouring manufacturing businesses.
“Britain’s manufacturing businesses consume huge amounts of heat every year, much of it from non-renewable sources,” GIB head of investment banking Edward Northam said.
“Dual-purpose plants like Wrexham, which are capable of generating renewable electricity and heat for the benefit of local industry, play an important role in greening the UK economy.”
Image: Wood biomass (SXC)
GIB, Equitix flash biomass cash
5.4MW Wrexham project will have potential to generate heat and power
By EBS