UK green investment bank invests 11m in Welsh biomass plant

Subscribe to our newsletter and get the latest news and business opportunities in your inbox
UK green investment bank invests 11m in Welsh biomass plant Biomass plant in Port TalbotThe UK Green Investment Bank (GIB) announced on Sept. 30th an investment by its fund, managed by Greensphere Capital LLP (Greensphere), to purchase and upgrade an operational biomass plant in Port Talbot, Wales.

The UK Green and Sustainable Waste and Energy Investment Limited Partnership (UKGSWEI), is investing £11 million to hold a minority stake in the plant. The UKGSWEI fund, in which GIB is a cornerstone investor, is managed by Greensphere.

Co-investment was sourced by Greensphere from Signia Wealth Management and Stobart PLC.

Shaun Kingsbury, chief executive, UK Green Investment Bank, said:

"This investment will secure the long-term future of an important Welsh renewable energy plant and will improve its efficiency and sustainability.

The Greensphere fund was set up, in part, to help support the UK's waste wood biomass sector and its first acquisition of an operational asset is an important step."

The plant, Western Bio-energy Limited, is a 14.7 MW biomass facility and was the first commercial-scale power station of its kind in Wales. It has been operational since 2008 and currently produces enough electricity to power over 28,000 homes.

The investment in the Port Talbot plant will see a number of upgrades implemented. These will include an increase in Grade A waste wood as a fuel source, and refurbishment of the plant. This is expected to improve operational efficiency and reduce operational risk.

Greensphere has negotiated a contract to provide feedstock for the lifetime of the plant with Stobart Biomass, which will significantly increase feedstock reliability and reduce costs.

The Greensphere-managed fund forms a key part of GIB's investment strategy into the waste and bioenergy sector, one of its investment priorities. GIB initially awarded the competitive fund mandate to Greensphere to drive investment into small scale waste to energy projects. This is the fund's second investment since it was set up in July 2012.

Divya Seshamani, Managing Partner, Greensphere Capital LLP, added:

"We see the Port Talbot plant as a cornerstone of the waste-wood-to-energy platform we are building in this sector."

List of country news

Country news

  • October 03, 2013

    Bilfinger Berger fund to acquire 11 PPP projects from Bilfinger Berger

    Bilfinger Berger Global Infrastructure SICAV S.A. (BBGI) has announced that it is in sole discussions with Bilfinger Berger in relation to the potential acquisition of up to 11 pipeline projects with a potential value of around £200 million. This follows the announcement on 28 May 2013 that Bilfinger proposes to divest of its concessions business unit which comprises PFI/PPP projects in Australia, North America and Europe. Read more
  • October 03, 2013

    John Laing Infra fund raises 242 million and acquires 3 PPP projects

    Listed infrastructure fund, John Laing Infrastructure Fund (JLIF), has closed the largest raise of new equity since its launch. The company has issued 218,291,103 new shares, at a price representing a 6.3% premium to JLIF's Net Asset Value, raising £242.3 million. The issue was oversubscribed. Read more
  • October 04, 2013

    PIN released for Bristol Extra Care housing DBFOM

    Bristol City Council published on Sept. 27th a Prior Information Notice (PIN) in the Official Journal of the European Union for the design, build, finance, maintain and operate a mixed tenure Extra Care Housing scheme on land at New Fosseway Road, Hengrove, Bristol, and additional sites in Bristol. Read more
  • October 07, 2013

    UK Green Investment Bank appoints Managing Director for Waste and Bio-energy

    The UK Green Investment Bank plc (GIB) announced on Friday the appointment of a new Managing Director for Waste and Bio-energy. Read more
  • October 08, 2013

    North London Waste PFI project cancelled

    The North London Waste Authority (NLWA) has decided to end its procurement for long-term waste management services through a private finance initiative. Read more

Share this news

Join us

In order to get full access to News section, you must have a full subscription. You can check all the benefits of becoming a member and purchase a subscription on our membership page.