Green Investment Group Limited (GIG) has announced the arranging of a £38 million financing for Wheelabrator Technologies, to be used for the construction of Ferrybridge Multifuel 2 (FM2) – a new, large-scale merchant energy-from-waste facility near Knottingley in West Yorkshire, United Kingdom.
The £38 million commitment is the first investment to be completed following the acquisition of the Green Investment Bank by a Macquarie-led consortium earlier this month (18 August 2017).
The investment is part of a £207 million senior debt facility from a syndicate of lenders including MUFG, Crédit Agricole Corporate & Investment Bank, Investec Bank plc and Banco de Sabadell S.A. that will fund Wheelabrator Technologies’ stake in FM2.
Once operational, the ~70 MW facility will generate electricity for UK homes and businesses. It is also expected to reduce greenhouse emissions and prevent waste going to landfill.
FM2 is being built by Multifuel Energy Ltd (MEL), a 50:50 joint venture between Wheelabrator Technologies and SSE plc.
It will be located adjacent to Ferrybridge Multifuel 1 (FM1), which commenced commercial operations in July 2015, and next to the recently decommissioned Ferrybridge C coal-fired power station. Combined, the FM1 and FM2 plants will form the largest energy-from-waste site in the UK.
"This first transaction under Macquarie ownership builds upon our well-established investment strategy. Working with Wheelabrator Technologies, we have helped finance the construction of major new energy infrastructure in West Yorkshire and facilitated the continued growth of the UK merchant energy-from-waste market."
Head of the Green Investment Group
"The key measure of GIG’s success will be in making or arranging new investments. We have set ourselves an ambitious target of leading £3 billion of investment in green energy projects over three years and the completion of this transaction under Macquarie ownership is our first step."
Head of Energy and Infrastructure, Macquarie Capital Europe