One of the first advanced gasification energy-from-waste (EfW) plants to win subsidies under Contracts for Difference (CfD) has sealed a financial package and construction contract.
Construction of Energy Works in Hull, Yorkshire, will now begin in January, with the 25MW facility due to be operational by the start of 2018.
The development will be funded by three new equity partners in Energy Works (Hull) Ltd:
- Bioenergy Infrastructure Group (BIG), an independent power producer established to invest in the construction of biomass and EfW plants in the UK
- Noy Fund, an investment group based in Israel focused on major infrastructure and energy projects
- John Hancock, through its affiliate Hancock Natural Resource Group, a timber, agriculture, and renewable energy investment management company
Engineering firm Spencer Group, which has steered the £200m project since its conception in 2010, will remain a shareholder in the business to ensure ongoing local involvement in the facility’s management and operations.
It will carry out the civil works as well as managing the construction phase and subsequent operations of the completed plant on behalf of the investors.
The project will be delivered under an engineer, procure and construct contract by engineering and construction company M+W Group.
Spencer Group founder and Energy Works chairman Charlie Spencer said: “We are pleased to have assembled an impressive group of partners to fund and deliver Energy Works, enabling us to establish a facility with outstanding green credentials in our home city, which is becoming recognised as the UK’s leading centre for renewable technologies.”
M+W Group’s Global Energy Business Unit director Neil Bennett said: “Energy Works will be the UK’s first major renewable energy project using advanced conversion technology to reach financial close within the new CfD framework.
“Meeting the requirements of this subsidy regime was extremely challenging, and I am therefore delighted that our solution is competitive, effective and bankable. We now look forward to delivering one of the UK’s most exciting and landmark renewable energy facilities.”
Energy Works won a competitive auction for CfD subsidies, alongside five other waste-related projects, in February.