Construction on a new 27.8MW combined heat and power biomass plant near Sandwich in Kent is set to start, following a £160M investment.
The Copenhagen Infrastructure II fund and Burmeister & Wain Scandinavian Contractor (BWSC) are jointly investing in the scheme, which when complete in the summer of 2018, will power around 50,000 homes. Part of the power will be supplied to local science and business district, the Discovery Park.
BWSC will construct the plant, which will be fired primarily with virgin wood sourced locally in the UK, as well as taking on a 20 year operation and maintenance contract.
“Our investment in Kent builds on our good experience with the UK biomass power market which to date includes the Brigg project which was commissioned in January 2016 and the Snetterton and Templeborough projects that are under construction and planned to be commissioned in 2017,” said Copenhagen Infrastructure senior partner Christina Grumstrup Sørensen. “The Kent project presents an attractive investment opportunity for CIP in a country with a well-established and stable regulatory regime. The investment is aligned with our strategy of developing projects benefitting from long-term contracts with strong industrial partners in order to deliver stable returns for our investors.”
“The Kent project is BWSC’s eighth turnkey biomass power plant project in the UK within the last five years, and it underlines our strong position on the UK renewable energy market,” added BWSC chief executive Anders Heine Jensen. “The project also illustrates the value of the close cooperation between strong financial and industrial players in the energy sector resulting in attractive business opportunities and investments for both parties. With the Kent project, BWSC has once again strengthened its role as market leader within constructing, operating and owning energy efficient power plants.”
Copenhagen Infrastructure is investing around 80% and BWSC around 20% of the £160M for developer Estover Energy, which will hold a minority interest when commercial operation begins.