Wheelabrator achieves financial close on Ferrybridge Multifuel 2 Project

Wheelabrator Technologies has reached financial close on the 744,000 tons per year (675,000 tonnes per year) Ferrybridge Multifuel 2 energy-from-waste facility in West Yorkshire, the second project in the Multifuel Energy Ltd.(MEL) partnership with SSE.

The Green Investment Group Limited (GIG) has commited £38 million (US$50 million) to achieve the financial closure. This is the first investment to be completed following the acquisition of the Green Investment Bank by a Macquarie-led consortium earlier this month (18 August 2017).

The investment is part of a £207 million (US$273 million) senior debt facility from a syndicate of lenders including MUFG, Crédit Agricole Corporate & Investment Bank,  Investec Bank plc and Banco de Sabadell S.A. that will fund Wheelabrator Technologies’ stake in the project.

Ferrybridge Multifuel 2 is an energy-from-waste facility that will generate 70 MW of clean, sustainable electricity to power UK homes and business. The first project in the MEL partnership, Ferrybridge Multifuel 1, a 744,000 tons per year (675,000 tonnes per year) energy-from-waste facility co-located in West Yorkshire, has been operational since 2015.

Progress to reach financial close on the project follows the award of planning consent by the Secretary of State in October 2015 with an environmental permit being granted by the Environment Agency one month later. Fuel for the Ferrybridge Multifuel 2 facility will be supplied by a number of major waste management companies through long-term fixed price contracts.

Edward Northam, Head of the Green Investment Group, said:

This first transaction under Macquarie ownership builds upon our well-established investment strategy. Working with Wheelabrator Technologies, we have helped finance the construction of major new energy infrastructure in West Yorkshire and facilitated the continued growth of the UK merchant energy-from-waste market.

Wheelabrator President and CEO Robert Boucher, said:

“This financial close is another major milestone for our 50:50 joint venture partnership with SSE to build and operate new energy-from-waste projects. We look forward to a long-term partnership with SSE and remain committed to investing in new long-term waste infrastructure across the UK, providing local and regional solutions to waste management and clean energy generation.”