Temporis Capital and Eco2, a Welsh renewable energy company, are pleased to announce the sale of the Port Clarence Energy project to Glennmont Partners. The sale is part of a £160m investment programme that will lead to the building of a 40 MW waste wood fired power station at Able Clarence Port, on the banks of the River Tees in Stockton-on-Tees, creating up to 500 jobs.
The project began two years ago and was jointly developed by Temporis and Eco2 on behalf of Port Clarence Energy Limited. It will provide 40MW of renewable energy to the UK energy market through the combustion of waste wood, and will consume circa. 250,000 tonnes of waste wood per year.
The new facility will employ 300 people during construction and create 200 jobs on site and in the waste wood delivery, for its 25-year life, in this area of high unemployment.
Once commissioned in 2018, the power plant will generate enough renewable energy to power 70,000 houses and will contribute to base load. It is planned to provide heat to an adjacent industrial property making another local business more competitive.
Stockton-on-Tees Borough Council and the Able Group, have been fully supportive of the project, playing a central role in attracting the developers and finance.
David Watson, Chief Executive of Temporis Capital LLP, said: “This project will have a significant positive impact on an area that continues to face some considerable economic challenges. We have taken an empty brownfield site and laid the foundations for it to be turned back into production, creating hundreds of jobs. We are delighted with the backing that has been shown to this development by the local authority, Stockton-on-Tees Borough Council, and the Able Group.”
David Williams, Chief Executive of Eco2 Ltd, said: “This is the third project we have completed with Glennmont in the past four years. Over the last two years alone, we have raised a total of around £0.75 billion through the sale of four biomass plants, and as a team have amassed unrivalled experience in the development, construction and operation of over 510MW of biomass projects throughout the world.”
Peter Stephenson, Executive Chairman of the Able Group, commented: “This is precisely the type of development that is ideally suited to the site and will add to the much needed new supply of renewable energy. It has been a pleasure working with Port Clarence Energy Limited and we congratulate them on reaching this, the most critical, phase of the development. Able has a successful track record operating in the port and energy sectors and this development adds to that growing portfolio.”
The power station is to be financed with equity from a fund managed by Glennmont Partners and debt arranged and provided by Deutsche Bank and Danske Bank, supported by EKF, the export credit agency of Denmark. As part of the transaction, the Glennmont fund will acquire 100% of the share capital of Port Clarence Energy Limited. Eco2 Ltd will continue to be responsible for managing the facility once it is commissioned.
The plant will be built by Babcock & Wilcox Vølund A/S with the civil engineering to be undertaken by Lagan Construction.
The waste wood used to fire the power station will be diverted from landfill sites. The feedstock will be provided by Stobart Biomass Products Limited; specialists in the provision of renewables logistics.