The fund Copenhagen Infrastructure II andBurmeister & Wain Scandinavian Contractor A/S (BWSC) have acquired 100% of the biomass-fired combined heat and power plant project Kent in the UK developed by Estover Energy Ltd and at the same time taken the investment decision to construct the project. The total investment in the Kent project will amount to approximately GBP 160m.
The Kent biomass power plant will have a capacity of 27.8 MW and will be fired primarily with virgin wood sourced locally in the UK. The power plant is expected to be in operation during the summer of 2018.
The power plant will be constructed by BWSC which is also the business partner of Copenhagen Infrastructure Partners (CIP) on two other biomass plants in the UK. BWSC will furthermore be responsible for operation and maintenance of the plant under an O&M contract for up to 20 years.
The plant will be able to produce power corresponding to the power consumption of 50,000 households. Heat and some of the power will be delivered to Discovery Park. Discovery Park is one of the UK’s leading science parks located in Sandwich, Kent, a global hub for science, technology, business and enterprise.
The entire biomass required will be sourced under a long-term contract with Euroforest, one of the largest virgin wood suppliers in the UK. The plant will deliver CO2 savings of approximately 100,000 tonnes every year.
The project is located in Kent near Sandwich in the UK and has been developed by Estover Energy Ltd.
The total investment in Kent amounts to approximately GBP 160m of which Copenhagen Infrastructure II K/S will invest around 80% and BWSC around 20%. Estover Energy Ltd will once commercial operation commences hold a minority interest in the project.
“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. 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”, says Christina Grumstrup Sørensen, Senior Partner in CIP.
“The Kent project is BWSC’s eighth turnkey biomass power plant project in the UK within the last 5 years, and it underlines our strong position on the UK renewable energy market. 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”, says Anders Heine Jensen, CEO in BWSC.
Burmeister & Wain Scandinavian Contractor A/S
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 engine based power plants. The majority of the projects are supplied as turnkey plants, and BWSC has delivered more than 178 power plants to 53 countries worldwide with a total capacity of more than 3,500 MW. Currently, BWSC has ongoing construction and O&M activities in England, Northern Ireland, Surinam, Lebanon, Sri Lanka, Kenya and Mauritius. BWSC generated a revenue of DKK 2.1bn in 2015, and the order book amounted to DKK 6.6bn at end-2015 and has more than quadrupled in the last 4 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. www.bwsc.com
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.