Copenhagen Infrastructure Partners' (CIP) Infrastructure II fund and engineering consultant Burmeister & Wain Scandinavian Contractor (BWSC) have acquired a $208.9m biomass-fired combined heat and power (CHP) plant project in Kent, UK.
Financial institution PensionDanmark and 18 other institutional investors have also invested in the CHP project, which will primarily use locally sourced wood.
BWSC's CEO Anders Heine Jensen said: “The Kent project is BWSC’s eighth turnkey biomass power plant project in the UK within the last five years, and it underlines our strong position on the UK renewable energy market.”
The plant will be able to generate 27.8MW power and once in operation, the energy produced will cater to the electricity demands of 50,000 households in the region.
PensionDanmark's CEO Torben Möger Pedersen said: “The joint venture model we’re applying provides an attractive return to PensionDanmark with limited risk.
“It also helps us contribute to the transition towards a green economy and to increase Denmark’s energy technology exports, so we see a strong potential in this type of partnership.”
To be built by BWSC, the plant is expected to commence operations in the summer of 2018. Under the terms of the deal, BWSC will not only provide the Danish biomass energy technology, but will also carry out operation and maintenance (O&M) work under a 20-year contract.
Heat and power generation will be supplied to Discovery Park, which is an important business park located in Kent. The plant will also be able to reduce carbon emissions by approximately 100,000t.
Image: Kent biomass-fired combined heat and power plant project. Photo: courtesy of BWSW.