Infrastructure investor, Equitix, and environmental investment firm Iona Capital, have announced the planned development of a £72 million energy from waste facility in Bridgwater, Somerset.
The 7.7MW Resource Recovery facility will process around 100,000 tonnes of commercial and municipal refuse derived fuel (RDF). Construction is expected to start in Q1 2019 and the plant to begin commercial operation in 2021.
Waste will be supplied by Geminor UK Limited – a leading exporter and supplier of Refuse Derived Fuel – under a long-term waste supply contract. Geminor will supply 75,000 tonnes. [updated January 2019].
The project will be delivered under a turnkey design and build contract with STC Power SRL – a specialist in the supply of small-scale thermal energy plants. The company has delivered 20 facilities since 2001.
Pinnacle Power Limited has been appointed as the operations and maintenance contractor. Pinnacle Power is part of the Pinnacle Group and is a provider of construction and operations services for district heat and power projects.
According to Iona Capital, the facility is based on the conventional combustion of RDF with heat recovered via a boiler to generate power from a steam turbine. The grate use technology was consented earlier this year. The facility has secured a 15 year power purchase agreement with electric utilities firm, Engie.
“This is a sector that we see huge opportunities in and are very excited to be working with our partners, Iona Capital, in developing this top-quality, high-impact facility.”Geoff Jackson
Nick Ross, director and co-founder of Iona Capital said: “We are very pleased to partner Equitix in the financing of the Bridgwater project which is the first of a number of planned investments in the EfW sector.”
Developer Bridgwater Resource Recovery secured planning permission for the facility in January 2015. Once completed, it will employ up to 25 full-time staff.
Based in London, Equitix describes itself as a leading investment firm that manages over £3 billion. The firm’s investment strategy focuses on small to mid-cap infrastructure projects, predominantly located in the UK, covering a range of sectors with a focus on social infrastructure and renewable energy.
Iona Capital has managed funds on behalf of institutional pension funds and invested these in long term projects within the UK bio-energy and low carbon markets.. It has offices in London and York.