SSE Thermal has agreed to sell a 50% stake in its Slough Multifuel project to a fund managed by Copenhagen Infrastructure Partners (CIP). The 50MW energy-from-waste facility will now be developed as a 50:50 joint venture between the two companies.
SSE Thermal holds existing planning permission for the facility, which will be located on the Slough Trading Estate in Slough, Berkshire, and has been carrying out site preparation works for the construction project since 2018.
When completed, Slough Multifuel will be capable of handling around 450,000 tonnes of waste-derived fuels annually, diverting the waste away from landfill and instead using it as a valuable source of energy.
Energy-from-waste specialist Hitachi Zosen Inova (HZI) has been appointed as the EPC contractor for the project. Construction is expected to commence at the beginning of 2021 and take up to four years. The completed facility will then be operated by SSE Thermal.
The total investment spend on the project is expected to be around £350m, divided equally between SSE Thermal and CIP. The consideration due from CIP will be received in line with project milestones being met and will initially contribute to project development spend.
Stephen Wheeler, Managing Director of SSE Thermal, said:
“We are pleased to confirm the sale of a 50% stake in our Slough Multifuel project to CIP, bringing an experienced partner on board and delivering value for our shareholders. When completed, Slough Multifuel will play a key role in the UK’s sustainable waste management, diverting thousands of tonnes of waste away from landfill, and instead converting it into a valuable source of energy.”
Christina Grumstrup Sørensen, Senior Partner at CIP, said:
“We are excited to be involved in the Slough Multifuel project. The continued partnership with SSE is highly regarded. We look forward to utilizing our unique competences in sustainable investment delivery, and to working with local and leading partners in delivering a modern waste management facility to the highest standards.”
SSE also owns the existing Slough Heat and Power Plant on the Slough Trading Estate, which continues to supply energy, water and heat to local customers.
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.