INTERVIEW - From here ... to Eternity
(12 December 2013)
Eternity Capital is excited to announce its investment in the construction of a £47.8m renewable energy plant in Birmingham, which will convert recovered wood into electricity.
Eternity is part of a consortium of equity funders in this project, which includes Balfour Beatty plc. - an international infrastructure group - and Foresight Group, who manages the UK Government’s Green Investment Bank for UK environmental infrastructure.
Investors worked together with partners across the waste industry to deliver this project which contributes to providing treatment solutions for recovered wood and to meeting environmental targets.
Alon Laniado of Eternity Capital said "Eternity Capital is excited to fund this opportunity and to work alongside partners across the sector in delivering this project which contributes to providing treatment solutions for recovered wood and to meeting EU emissions targets. This investment reflects Eternity's strategy to build a portfolio of waste-to-energy projects as part of its wider focus on waste and environmental services."
About this Project
• 10.3 MWe renewable energy plant in Tyseley, Birmingham
• The plant will convert recovered wood into electricity using gasification technology, a form of advanced thermal treatment of waste where the carbon-based material in the waste is converted into a gas which is used to raise steam. This is then passed through a turbine to produce electricity.
• The project will be supplied with around 70,000 tonnes per annum of Grade A-C recovered wood secured under a long-term fuel supply contract from JM Envirofuels Ltd., a Birmingham based SME.
• 1Carbonarius is the project developer and MWH will be responsible for building and operating the plant under the Engineer, Procure, Construct (“EPC”) and five year Operations and Maintenance (“O&M”) contracts.
• Nexterra Systems Corp., which has completed seven similar projects in the US and Canada, will provide the complete biomass gasification system.
• Over its expected 20 year lifetime, the new plant is forecast to supply enough renewable energy to power 17,000 homes each year and is expected to deliver a reduction in greenhouse gas emissions of around 2.1 million tonnes of CO2 equivalent, and to save around 1.3 million tonnes of wood from landfill.
Equity co-investment is provided by:
• Eternity Capital Management who are investing £6.2 million
• Balfour Beatty Investments, who are investin £12.4 million
• Foresight managed fund, UKWREI, who are investing £6.2m
Preferred loans is provided by:
• The Green Investment Bank, who are investing £12m
• GCP Infrastructure Fund (GCP), who is providing £11 million
Business Secretary Vince Cable said: "It is encouraging to see this innovative new technology coming to the UK for the first time. This investment will create green jobs and help the environment by reducing carbon emissions and converting wood diverted from landfill into cleaner energy for thousands of homes and businesses. It is also good news for the local area helping to build a stronger economy by creating over 100 private sector jobs in Birmingham."
About the project partners:
About Balfour Beatty
Balfour Beatty www.balfourbeatty.com is an international infrastructure group that delivers world class services essential to the development, creation and care of infrastructure assets; from finance and development, through design and project management to construction and maintenance.
Its businesses draw on more than 100 years of experience to deliver the highest levels of quality, safety and technical expertise to its clients principally in the UK, the US, Southeast Asia and the Middle East. Balfour Beatty continues to develop its business in key growth markets in South Africa, Australia, Canada, Brazil and India.
With proven expertise in delivering infrastructure critical to support communities and society today and in the future, Balfour Beatty’s key market sectors include transportation (roads, rail and aviation), power and energy, mining, water and social infrastructure such as hospitals and schools.
Balfour Beatty employs 50,000 people around the world.
Foresight Group has been managing investment funds on behalf of institutions and retail clients for almost 30 years. With a background in Private Equity and Venture Capital, Foresight has diversified activities and today manages institutional funds principally in European Infrastructure (Solar and PPP), Environmental and UK small cap Private Equity, including six years of specific Infrastructure experience.
Foresight has £1 billion of assets under management and boasts one of the UK’s leading Environmental infrastructure investment teams. It is responsible for managing approximately £140 million of environmental assets which include the £50m mandate from the UK Government’s Green Investment Bank for UK environmental infrastructure. Foresight also manages the £60 million Foresight Environmental Fund (FEF).www.balfourbeatty.com
About the Green Investment Bank (GIB)
The UK Green Investment Bank was launched in November 2012.With £3.8 billion of funding from the UK Government, it is the first bank of its kind in the world. It is a "for profit" bank, whose mission is to accelerate the UK's transition to a greener economy, and to create an enduring institution, operating independently of Government.www.balfourbeatty.com >
O-Gen UK was formed in 2005 to develop waste wood Advanced Conversion Technology energy plants, with the first plant, ‘O-Gen Acme Trek’ being developed in Stoke on Trent.The Una Group, a multifaceted property and environmental group, joined forces with O-Gen UK to form Carbonarius in 2009, this primarily to develop an ACT facility in Plymouth (O-Gen Plymtrek). Carbonarius is the majority shareholder in this facility which is currently undergoing hot commissioning.
Following the success of these facilities Carbonarius has sought to develop mid sized facilities, of which the Tyseley project is the first. Carbonarius’s continuing growth is aimed at developing 10MWe to 20MWe projects using a variety of biomass feedstocks and proven technologies which are new to the UK.
In 2013, Carbonarius won the Best Energy from Waste Initiative category in the MRW National Recycling Awards. http://www.nationalrecyclingawards.com/747094
About GCP Infrastructure Fund
GCP is an open-ended investment company that seeks to generate returns from senior and subordinated infrastructure debt and related and/or similar assets. GCP achieves this by investing in loans secured against long dated, public sector-backed cash flows and offers partial inflation protection. The majority shareholder of GCP is GCP Infrastructure Investments Limited (“GCPIIL”), which is a closed-ended investment company incorporated in Jersey, admitted to the Official List and to trading on the London Stock Exchange's Main Market. GCP and GCPIIL are advised by Gravis Capital Partners LLP. www.gcpuk.com/gcp-infrastructure-fund-ltd
About Nexterra Systems Corp.
Nexterra is a global leader in plant-scale, energy from waste gasification systems for the production of clean, renewable heat and power. The company offers a proven fixed bed updraft gasification technology with over 150,000 hours of commercial operation and uptime of over 90%. The typical scale of systems ranges from 2 – 40 MWt (8 – 120 MMBtu/hr) net useable heat for thermal systems, or from 2 – 12 MW electricity for power systems.Nexterra’s gasification technology features lower cost, higher reliability, lower emissions and great fuel flexibility compared to conventional biomass energy systems. Nexterra has completed seven commercial systems in Canada and the US. www.nexterra.co.uk
MWH Global is a strategic consulting, technical engineering and construction services firm leading the wet infrastructure sector. Offering a full range of services and innovative, award-winning solutions beginning in the initial planning phases through construction and asset management, the company partners with clients in multiple industries to implement projects and programs that focus on water, energy, natural resources and infrastructure. With almost 8,000 employees in 35 countries spanning six continents dedicated to fulfilling MWH’s purpose of Building a Better World, which reflects the company’s commitment to sustainable development. MWH is a private, employee-owned firm with a rich legacy beginning in 1820. www.mwhglobal.com
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