Biomass

GIG reaches financial close on Wismar CHP Biomass Plant

02 March 2021

  • GIG, Wismar Pellets and PEARL Infrastructure Capital reach financial close on the Bioenergie Wismar Combined Heat and Power Plant
  • The project is GIG’s first bioenergy project in continental Europe and is an important solution for decarbonising heat and industrial processes
  • The plant will supply heat to local pellet manufacturer Wismar Pellets and sawmill ILIM Nordic Timber. 

Macquarie’s Green Investment Group (GIG), Wismar Pellets and PEARL Infrastructure Capital (PEARL) have reached financial close on the Bioenergie Wismar Combined Heat and Power Plant (Bioenergie Wismar) in northern Germany. Located at the Port of Wismar, it is GIG’s first bioenergy project in continental Europe. 

Co-developed by GIG and Wismar Pellets, the combined heat and power (CHP) biomass plant will generate up to 18 MWe of electricity and 27 MWth of renewable heat. The project’s fuel supply is anchored by Wismar Pellets and ILIM Nordic Timbers, who will provide bark material as a by-product of their timber operations. Wismar Pellets and ILIM will also contract for the project’s steam output and utilise the heat at their neighbouring facilities for timber drying. The project successfully secured an EEG Feed-in-Tariff for its electricity output in November 2020.

For construction funding, GIG has partnered with PEARL, a specialised infrastructure investor, who as majority shareholder will now take the project into construction with Wismar Pellets. Macquarie Capital, the project’s sole financial advisor, also raised a long-term project finance debt facility to support construction which was provided by Landesbank Baden-Wuerttemberg (LBBW). Commercial operations are anticipated to commence in Q4 2022.

“We’re proud to have brought GIG’s development expertise to this important project. The decarbonisation of heat remains one of our biggest challenges, and projects like Bioenergie Wismar play a crucial role in the transition of industry, and Europe, to a net-zero future.”

Edward Northam
GIG's Head of Europe 

"The Bioenergie Wismar greenfield project sits at the core of PEARL’s investment strategy in environmental infrastructure in Europe. We are delighted to bring our technical and financial expertise to support the combined production of baseload renewable electricity and renewable heat in Germany."

Jean-Christophe Guimard
PEARL's Chief Operating Officer 

Germany is the fifth largest biomass market in the world, with the technology currently accounting for just over 10% of the country’s total electricity generation mix1. It is also playing a critical role in the decarbonisation of industry, producing roughly 99% of all renewable heat used in industrial processes across Europe2. Through the generation of renewable heat and power Wismar Biomass Plant is anticipated to reduce GHG emissions by 47,000 tonnes of CO2e per annum, equivalent to the removal of over 15,500 petrol cars from the road over the lifetime of the project.  

GIG has supported the biomass CHP sector since 2012, with one of its first investments being into the Craigellachie CHP plant in Scotland, which provides heat and power to the local Macallan distillery. GIG is now active in 12 countries across Europe.

PEARL’s fields of activity include the production of renewable thermal energy, waste recycling and water management, in France and in Europe.

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Footnotes 

  1. Fitch Solutions Global Biomass Power Report, January 2021
  2. BioEnergy Europe’s Bioheat Statistical Report 2020, available at https://bioenergyeurope.org/article.html/259

About PEARL Infrastructure Capital

PEARL Infrastructure Capital (PEARL) is a private equity investment fund dedicated to the energy and ecology transition in Europe. Founded by seasoned professionals from the energy and environment industry in partnership with Edmond de Rothschild Private Equity, PEARL completed its final closing in March 2020 with a total commitment in the fund of 280 mn € (i.e. an investment capacity of ca. 1.2 bn € in projects) which is currently being deployed into European assets in the following sectors: (i) production of baseload renewable energy such as biomass cogeneration plants, (ii) waste valorisation and (iii) water cycle management.

More information on: www.pearlinfracap.eu