Edinburgh / London, UK — Foresight Group and UK Green Investment Bank plc have announced a £30m investment in the construction of a new £60m (€83 m) advanced-technology Waste to Energy (WtE) gasification facility in Hoddesdon, Hertfordshire. The project represents a new phase in the development of the UK waste market with advanced technology combined with a merchant waste supply. It will be the first commercial scale, refuse derived fuel (RDF) gasification plant to be construction financed by third party investors. The gasification technology will treat commercial and industrial waste.
GIB, through its fund manager, Foresight, is investing £30m in a combination of shareholder loans and equity with co-investors NOY and P3P providing £20m and £10m respectively on the same terms. Over its lifetime, this state-of-the art gasification facility is forecast to:
- supply renewable electricity equivalent to the needs of more than 7,000 homes each year;
- deliver a lifetime reduction in greenhouse gas emissions of more than 900,000 tonnes, equivalent to taking nearly 16,000 cars off the road each year;
- increase the production of RDF feedstock, resulting in the increased pre-treatment and recycling of waste which is currently sent to landfill; and
- create up to 110 engineering, construction and project management jobs and 17 full time jobs once operational.
Work on the plant will begin shortly and it is expected to begin operations in the first half of 2017. The 10 MWe plant, developed by AssetGen Partners, will be powered by more than 90,000 tonnes of RDF sourced from the commercial and industrial sectors and supplied by two of the UK’s leading established waste suppliers, Biffa and Powerday.
Shaun Kingsbury, Chief Executive, UK Green Investment Bank, said: “This first-of-kind, high-technology waste facility signals a new phase in the UK waste management sector. The project is a great example of innovation driven by and backed up by some great UK companies.”
And Minal Patel, Director at Foresight Group, commented: “The Foresight team has worked over many months with our financing partners, our contractors and suppliers to structure and complete this landmark investment, which is the first project finance investment into a utility scale merchant waste RDF fuelled gasification project in the UK. This innovative facility will be making an important contribution to energy security at a national level and waste management at a local level.”
Source: UK Green Investment Bank / Foresight Group