Copenhagen Infrastructure II and Burmeister & Wain Scandinavian Contractor A/S buy biomass project in Kent

The Copenhagen Infrastructure II, managed by Copenhagen Infrastructure Partners (CIP), and Burmeister & Wain Scandinavian Contractor A/S (BWSC), a Danish engineering and contracting company which develops, builds, operates and owns biomass, biogas and engine based power plants, have acquired 100% of the biomass-fired combined heat and power plant project Kent in the UK.

The power plant, developed by Estover Energy Ltd.,  will be constructed by BWSC which is also the business partner of CIP on two other biomass plants in the UK. BWSC will furthermore be responsible for operation and maintenance of the plant under an O&M contract for up to 20 years.

The total investment in Kent amounts to approximately £160 million (US$210 million) of which Copenhagen Infrastructure II K/S will invest around 80% and BWSC around 20%. Estover Energy Ltd will once commercial operation commences hold a minority interest in the project.

The Kent biomass power plant will have a capacity of 27.8 MW and will be fired primarily with virgin wood sourced locally in the UK. It is expected to be operational by the summer of 2018.

The plant will be able to produce power corresponding to the power consumption of 50,000 households. Heat and some of the power will be delivered to Discovery Park. Discovery Park is one of the UK’s leading science parks located in Sandwich, Kent, a global hub for science, technology, business and enterprise.

The entire biomass required will be sourced under a long-term contract with Euroforest, one of the largest virgin wood suppliers in the UK. The plant will deliver CO2 savings of approximately 100,000 tonnes every year.

Herbert Smith Freehills  advised CIP and BWSC on the acquisition and development of the plant.

Christina Grumstrup Sørensen, Senior Partner in CIP, said

“Our investment in Kent builds on our good experience with the UK biomass power market which to date includes the Brigg project which was commissioned in January 2016 and the Snetterton and Templeborough projects that are under construction and planned to be commissioned in 2017. The Kent project presents an attractive investment opportunity for CIP in a country with a well-established and stable regulatory regime. The investment is aligned with our strategy of developing projects benefitting from long-term contracts with strong industrial partners in order to deliver stable returns for our investors.”

Anders Heine Jensen, CEO in BWSC said:

“The Kent project is BWSC’s eighth turnkey biomass power plant project in the UK within the last 5 years, and it underlines our strong position on the UK renewable energy market. The project also illustrates the value of the close cooperation between strong financial and industrial players in the energy sector resulting in attractive business opportunities and investments for both parties. With the Kent project, BWSC has once again strengthened its role as market leader within constructing, operating and owning energy efficient power plants.”