Ireland’s power utility ESB and UK Green Investment Bank (GIB) plan to invest £70m jointly for a £190m biomass power development at the Port of Tilbury in Essex, UK.
Both parties will spend £35m for the renewable power-generating facility, which will be contributed in combination of equity and shareholder loans.
The project will also involve more than £2m participation from technology provider Aalborg Energie Technik.
Eksport Kredit Fonden, Investec and Rabobank are the senior debt funding organisations for the project. Senior debt funding is being provided by EKF.
Once operational, the project is likely to supply 300GWh of electricity annually, which will meet the energy requirements of 70,000 homes in the country.
Commissioning of the project has been scheduled for early 2017.
The project will require around 270,000 tonnes of waste wood fuel annually, which will be sourced from Stobart Biomass.
Burmeister & Wain Scandinavian Contractor (BWSC), which is the EPC contractor for the project, will also be responsible for operations and maintenance of the facility.
UK Green Investment Bank chief executive Shaun Kinsbury said: "The Tilbury project is well-placed to capitalise on the UK’s largest regional waste wood market, generating green electricity and creating local employment from London’s waste resources.
"The project is also important for marking the first investment of the Irish electricity utility ESB in UK waste and biomass infrastructure."
ESB chief executive Pat O’Doherty said: "ESB’s investment in Tilbury Green Power demonstrates the company’s continuing commitment renewable electricity generation and further reducing the carbon mix in our portfolio. It complements ESB’s existing UK investments in wind and gas-fired generation.
"As the British and Irish energy markets move closer together, investments like Tilbury will be increasingly important on both sides of the Irish Sea."