Eco2 – committed to the future of renewable energy

WELSH RENEWABLE ENERGY COMPANY ECO2 LTD SELLS ANOTHER BIOMASS PLANT IN £160m DEAL

Eco2 has sold three biomass plants totalling circa half a billion pounds
within the last three years

24.11.14
WELSH RENEWABLE ENERGY COMPANY ECO2 LTD SELLS ANOTHER BIOMASS PLANT IN £160m DEAL

Eco2 Press Release

Welsh renewable energy company - Eco2 Ltd - has announced the sale of yet another biomass project, a 44.2MW straw-powered biomass plant in Snetterton, East Anglia to joint venture BWSC PCL – a collaboration between Burmeister & Wain Scandinavian Contractor A/S (BWSC) and PensionDanmark in a £160m deal.

This marks the second deal of its kind to BWSC PCL, following Eco2 Ltd’s sale of its Brigg straw-fired biomass plant in North Lincolnshire to the venture in 2013.

The Snetterton Renewable Energy plant will be primarily fuelled using locally sourced straw and will generate enough electricity to meet the needs of approximately 82,000 homes. It will result in an annual CO2 emissions reduction of approx. 300,000 tonnes.

Originally developed by Iceni Energy Ltd, the Snetterton plant achieved planning consent in July 2012. Iceni Energy Ltd joined forces with Eco2 Ltd in May 2013 to take the project forward to financial close.

CEO of Eco2, Dr David Williams, comments;

“This is a significant deal for the UK biomass industry, and the second sale Eco2 has completed with BWSC PCL on a sustainable-scale straw-fired biomass plant. We have a longstanding relationship with BWSC, who we also worked with on the sale of Wales’ first commercial-scale biomass plant in Port Talbot in 2006 – the Western Wood Energy Plant.”

“As a company, we are successfully operating on a global scale, and this latest deal is the third of its kind in the past three years, totalling £490m. The sale reaffirms Eco2’s prominent position as the leading biomass developer in the UK.”

Darren Williams, Commercial Director at Eco2 added;

“Building the plant will result in an £11m annual investment in the East Anglian agricultural economy from fuel supply contracts by sourcing all straw from within the region where possible. In addition, it is expected that the Snetterton Biomass Plant will provide up to 36 permanent jobs when operational, plus a further 50 jobs in fuel transportation. During construction, a maximum of 250 people will be employed on the site each day.”

The investment in Snetterton is of DKK 1.6 billion. PensionDanmark invests DKK 1.4 billion, which is financed through Copenhagen Infrastructure I, managed by Copenhagen Infrastructure Partners. BWSC invests DKK 0.2 billion in the power plant.

BWSC will be in charge of constructing, operating and maintaining the plant, which is expected to be operational by spring 2017. Straw supply contracts have been put in place for the next 12 years.

Eco2 Ltd is working on a further £1 billion of biomass projects and expects to be making further announcements in the near future.