Copenhagen Infrastructure II, a fund under infrastructure fund management company Copenhagen Infrastructure Partners (CIP) and engineering consultant Burmeister & Wain Scandinavian Contractor (BWSC) have acquired the $208.9m Kent biomass-fired combined heat and power (CHP) plant project in the UK.
The partners have also made investment decision to build the project, which has been developed by Estover Energy.
Planned to be built in Kent in southern England, the new 27.8MW CHP plant is designed to use locally sourced wood to generate clean power electricity required to power 50,000 households in the region.
BWSC CEO Anders Heine Jensen said: “The Kent project is BWSC’s eighth turnkey biomass power plant project in the UK within the last five years, and it underlines our strong position on the UK renewable energy market.”
Copenhagen Infrastructure II has agreed to invest around 80% in the project and BWSC with 20%. Estover Energy will own a minority stake in the project.
Copenhagen Infrastructure II is a fund managed by Copenhagen Infrastructure Partners (CIP) in which PensionDanmark is an investor.
PensionDanmark CEO Torben Möger Pedersen said: “The joint venture model we’re applying provides an attractive return to PensionDanmark with limited risk.
“It also helps us contribute to the transition towards a green economy and to increase Denmark’s energy technology exports, so we see a strong potential in this type of partnership.”
Planned to be constructed by BWSC, the power plant is scheduled to be commissioned in 2018.
CIP senior partner Christina Grumstrup Sørensen said: “The Kent project presents an attractive investment opportunity for CIP in a country with a well-established and stable regulatory regime.”
In addition to providing Danish biomass energy technology, BWSC will provide operation and maintenance (O&M) services for the power plant under a 20-year contract.
Heat as well as some of the power generated by the new plant will be supplied to Discovery Park.
Image: Kent biomass-fired combined heat and power plant project. Photo: courtesy of BWSW.