Low Carbon Biomass Project expected to be among first built under Government’s ‘Supplier Cap’ for dedicated biomass.
Eco2 today announced the sale of its 40MW straw-powered biomass plant in Brigg, Lincolnshire to new joint venture BWSC PLC - a collaboration between Burmeister & Wain Scandinavian Contractor A/S (BWSC) and PensionDanmark in a £160M deal.
The new power plant will have a capacity of 40 MW and will be primarily fuelled using locally sourced straw. The plant is expected to produce enough energy to cover the total consumption of 70,000 households and will result in an annual CO2 emissions reduction of approx. 300,000 tonnes.
BWSC’s share of the investment in the new power plant is £32m and they will be in charge of building, operating and maintaining the plant, which is expected to be operational from early 2016.
The BWSC PLC joint venture is said to provide the necessary framework for establishing further new power plants in future and it is hoped that further Eco2 projects will be involved. To date, projects developed and built between Eco2 and BWSC amount to circa £400M in the UK and offer important green jobs during the recession.
“BWSC and PensionDanmark are forming a joint venture with the aim of building, owning and operating select biomass power plants internationally. We are using Danish Pension Fund money to improve our competitiveness and to create hundreds of green jobs in our host markets.” says BWSC CEO Anders Heine Jensen.
PensionDanmark’s share of the investment in the new power plant is £128m and will be funded via the Copenhagen Infrastructure I fund, which was established in 2012 and is administered by Copenhagen Infrastructure Partners (CIP). PensionDanmark is the sole investor in the fund with DKK 6bn.