Spencer Group has sealed financing and a construction contract for the £200m 25MW Energy Works bio energy scheme in Hull in East Yorkshire.
The development will be funded by three equity partners: Bioenergy Infrastructure Group (BIG), an independent power producer; Noy Fund, an investment group based in Israel; and John Hancock, through its affiliate Hancock Natural Resource Group.
Work on the project will begin in January 2016, with the facility due to be operational by January 2018.
Spencer will remain a shareholder in the business, to ensure ongoing local involvement in the facility’s management and operations.
Energy Works will be delivered under an engineer, procure and construct (EPC) contract by global engineering and construction company M+W Group.
Spencer will carry out the civil works as well as managing the construction phase and subsequent management of the operations of the completed plant on behalf of the investors.
Energy Works is also supported by the government’s Contracts for Difference (CfD) arrangements, and has been awarded a grant of almost £20m from the European Regional Development Fund
Spencer Group executive chairman and chairman of Energy Works (Hull) Charlie Spencer said: “We are delighted to have reached financial close and to have agreed a contract for the construction of Energy Works, which will enable us to move into the delivery phase of this pioneering development.”
Image: impression of the facility (Spencer Group)
