Wheelabrator Technologies has announced a £207m package for financial close on the Ferrybridge Multifuel 2 (FM2) energy-from-waste (EfW) plant, the second project in the Multifuel Energy joint venture with SSE.
FM2 will process up to 675,000 tonnes a year on the West Yorkshire site alongside the first project in the partnership, Ferrybridge Multifuel 1, which has been operational since 2015.
Construction began in August 2016 and operations are expected to begin in Q3 2019. Combined, the plants will form the largest EfW site in the UK. Fuel will be supplied by major waste management companies through long-term fixed-price contracts.
Wheelabrator president and chief executive Robert Boucher said: “This financial close is another major milestone for our 50:50 joint venture partnership with SSE to build and operate new EfW projects.
“We look forward to a long-term partnership with SSE, and remain committed to investing in new long-term waste infrastructure across the UK, providing local and regional solutions to waste management and clean energy generation.”
SSE’s director of business development Sandy Honeyman said: “Following the successful working partnership between SSE and Wheelabrator Technologies on the FM1 project, we welcome the opportunity to continue the partnership and complete construction of FM2, which has progressed well during the past 12 months.”
The deal marks the first investment by the Green Investment Group (GIG), the new name for the Green Investment Bank which was bought by a Macquarie-led consortium in August.
GIG contributed £38m of £207m senior debt facility from a syndicate of lenders including MUFG, Crédit Agricole Corporate & Investment Bank, Investec and Banco de Sabadell that will fund Wheelabrator’s stake in FM2.
Edward Northam, head of GIG, said: “This first transaction under Macquarie ownership builds on our well-established investment strategy.
“Working with Wheelabrator Technologies, we have helped to finance the construction of major new energy infrastructure in West Yorkshire, and facilitated the continued growth of the UK merchant energy-from-waste market.”