UK Green Investment Bank plc (GIB) has committed £35m of senior debt to the construction of Wheelabrator Parc Adfer, a new £180m energy-from-waste (EfW) plant at Deeside Industrial Park in Flintshire, North Wales.
The lending club also includes Mitsubishi UFJ Financial Group (MUFG), Siemens Bank and Natixis, with Barclays providing an equity bridging loan.
The 18.8 MW facility, which has been developed by Wheelabrator Technologies Inc (WTI), is expected to prevent up to 200,000 tonnes of non-recyclable waste being sent to landfill every year.
The plant is forecast to generate approximately 133 GWh of electricity annually once operational – equivalent to the power needs of over 30,000 homes. It is also expected to help avoid greenhouse gas emissions equalling 21,000 tonnes per annum.
“Parc Adfer is likely to be one of the last local authority waste PPP projects to reach financial close in the UK, bringing a 20-year programme to an end and ushering in a new era of waste infrastructure financing.”
The facility is being built and operated under a public-private partnership (PPP) with five local authorities in North Wales: Flintshire County Council; Isle of Anglesey County Council; Gwynedd Council; Conwy County Borough Council; and Denbighshire County Council.
It is anticipated that the mobilisation phase at the facility will commence imminently and construction will be complete by the end of 2019. Hundreds of jobs are anticipated to be created during construction, with the plant supporting 35 new, full-time positions once operational.
Constructions industrielles de la Méditerrańes S.A. (CNIM) has been awarded the engineering, procurement and construction (EPC) contract for the project. WTI will manage operations and maintenance (O&M) at the plant.
Edward Northam, Head of Investment Banking, GIB, said: “Parc Adfer is likely to be one of the last local authority waste PPP projects to reach financial close in the UK, bringing a 20-year programme to an end and ushering in a new era of waste infrastructure financing. Investors are already turning their attentions to the opportunities presented by new merchant infrastructure, which we believe could require up to £3.6 billion of additional funding by 2020.”
Paul Green, managing director, WTI UK, said: “The Wheelabrator Parc Adfer facility is another example of our commitment to investing in new and necessary energy recovery infrastructure across the UK.
“We remain focussed on developing our pipeline for growth and building long-lasting relationships in the five North Wales authorities, as well as commercial waste companies across the UK. We’re committed to bringing our experience and industry expertise to Wheelabrator Parc Adfer, delivering a facility of the highest safety and operational standards.”