Danish joint venture completes UK biomass power plant ahead of schedule

In 2013, Burmeister & Wain Scandinavian Contractor A/S (BWSC) and Copenhagen Infrastructure Partners (CIP), together with PensionDanmark, formed a joint venture, BWSC PLC Ltd. (BPCL), to build, own and operate biomass power plants primarily in Northern and Western Europe and North America.

The construction of the joint venture’s first 40 MW straw fired biomass plant, which was contracted in August 2013, (Brigg Renewable Energy Plant (Brigg)) has now been completed. The plant was handed over to the owners on 21 January 2016 after a construction period of less than 27 months, which is 3 months ahead of schedule and within the agreed investment budget of GBP 162m.

Brigg, which is located in Lincolnshire, East England, is based on Danish biomass energy technology supplied by BWSC under a turnkey EPC contract. Furthermore, BWSC is responsible for operation and maintenance of the plant under a 15-year O&M agreement, which commenced on the date of completion of the plant.

Brigg is owned by the CIP fund, Copenhagen Infrastructure I K/S which has PensionDanmark as the founding and sole investor, together with BWSC.

”We are very pleased with the good cooperation with CIP and BWSC. With the joint venture, we have found a model that provides PensionDanmark an attractive return with limited risks – risks that are now even further reduced following the successful completion of the plant. At the same time, we are helping to increase Danish energy technology exports. We therefore see strong potential in these types of partnerships,” says Torben Möger Pedersen, CEO, PensionDanmark.

”The completion of the Brigg power plant is a major step for BWSC as it exemplifies the synergies from a close collaboration between financial and industrial players in the energy sector. In addition, it supports BWSC’s strategic objective of increased activities within financing of and investing in power plants to increase our competiveness. The collaboration with CIP and PensionDanmark has strengthened BWSC’s position as market leader within building, operating and owning decentralised biomass power plants, and we look forward to continuing this fruitful partnership”, says Anders Heine Jensen, CEO in BWSC.    

“The completion of Brigg is an important milestone for CIP and PensionDanmark, and for our cooperation with BWSC. We have been very pleased with the excellent partnership with BWSC, both as a co-investor and EPC contractor, and look forward to the continued cooperation. The successful completion also demonstrates the value of forming partnerships between financial investors and strong industrial companies”, says Christina G. Sørensen, Senior Partner in CIP.

For further information, please contact:

Tage Otkjær, PensionDanmark, phone: +45 3067 2815 or email: tao@pension.dk, webpage: www.pension.dk

Mette Mulipola, BWSC, phone: +45 48102302 or email: mknm@bwsc.dk, webpage: www.bwsc.com

Julie Trangbæk, CIP, phone: +45 70705151 or email: cip@cip.dk, webpage: www.cip.dk

Facts about the project:
Brigg Renewable Energy Plant (Brigg) will be primarily straw fueled and has a capacity of 40 MW, corresponding to the total consumption of ~70,000 households, and an estimated annual CO2 emissions reduction of ~300,000 tonnes. The plant consumes ~250,000 tonnes of straw per year which is sourced from farmers in the local community. The boiler of the plant has been supplied by the Danish high-tech company BWE.

Facts about the parties:

About PensionDanmark
PensionDanmark A/S (PensionDanmark) manages labour market pensions under collective and corporate agreements and health care products on behalf of 687,000 members in 25,600 businesses within the private and public sectors. PensionDanmark is owned by its customers, and profits belong entirely to the members. Premium income totalled DKK 12.1bn in 2015, and the members’ savings total more than DKK 180bn. PensionDanmark currently has DKK 18bn invested in infrastructure and expects to invest a further DKK 8bn in infrastructure over the coming years.

About BWSC
Burmeister & Wain Scandinavian Contractor A/S (BWSC) is a Danish engineering and contracting company which develops, builds, operates and owns high-performance biomass, biogas and diesel power plants. The majority of the projects are supplied as turnkey plants, and BWSC has delivered more than 175 power plants to 53 countries worldwide with a total capacity of more than 3,500 MW. Currently, BWSC has ongoing activities in England, Northern Ireland, Surinam, Lebanon and the Cayman Islands. BWSC generated a revenue of DKK 1.8bn in 2014, and the current order book amounts to more than DKK 7bn and has more than quadrupled in the last 3 years. BWSC originates from the stationary engine division of Burmeister & Wain (B&W), which has built and installed diesel engines for power plants since 1904. BWSC was established as a separate specialist company in 1980 and was acquired by Mitsui Engineering and Shipbuilding Co. Ltd. in 1990.

About Copenhagen Infrastructure Partners

Copenhagen Infrastructure Partners P/S (CIP) is a fund management company focused on energy infrastructure including offshore wind, onshore wind, solar PV, biomass and energy-from-waste, transmission and distribution, and other energy assets like reserve capacity and storage. CIP has approximately 110 employees and offices in Copenhagen, Taipei, New York, Tokyo, Utrecht, and London.

CIP manages six funds and has more than EUR 8 bn under management. CI I, CI A I and CI A II have PensionDanmark as founding- and sole investor. CI II has 19 Danish and international institutional investors and CI III has 42 institutional investors from the Nordics, Continental Europe, the UK, Israel, Asia, Australia, and multi-lateral organizations e.g. EIB. CI NMF I has 15 investors from the Nordics and Continental Europe.

CIP was founded in 2012 by senior executives from the energy industry in cooperation with Pension Denmark.