Foresight and the UK Green Investment Bank back new £60m 10 MWe gasification plant in Hertfordshire

Foresight Group (Foresight) and the UK Green Investment Bank plc (GIB) have today announced a £30m investment in the construction of a new £60m 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, which will treat commercial and industrial waste, will be designed by Biomass Power Limited (based in Stafford), with Bouygues Energy & Services acting as EPC and O&M Contractor.

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.

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.

The plant is to be constructed 22 miles north east of London. Work on the plant will begin shortly and it is expected to begin operations in the first half of 2017.

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.

GIB’s investment through Foresight is in addition to the recently announced Recycling & Waste LP (RaW) fund, which will target smaller waste and recycling projects up to a total value of £30m.

"This latest investment by the Green Investment Bank in a gasification plant in Hertfordshire will use technology and parts sourced from British companies and create more than 100 local jobs. Renewable energy is the future and when this plant is operational it will power over 7,000 homes each year. The Green Investment Bank is at the heart of our industrial strategy, creating sustainable long term jobs and growth."

Vince Cable MP
Business Secretary

"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."

Shaun Kingsbury
Chief Executive, UK Green Investment Bank

"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."

Minal Patel
Director at Foresight Group

About the project

Total project value:  £60.4m

Total GIB indirect investment: £29.9m equity

Investors:  GIB, NOY, P3P

Environmental impact: reduction in lifetime greenhouse gas emissions of over 900,000 tonnes, equivalent to taking over 16,000 cars off the road

Energy generation: over 60 GWh of electricity produced per year

Feedstock supply: More than 90,000 tpa supplied by Biffa and Powerday

Developer: AssetGen Partners

Engineering and Technology Provider: Biomass Power Limited

EPC and O&M Contractor: Bouygues E&S UK Ltd