Cork, Ireland-based renewable energy developer Kedco expects to secure financing by Q3 for proposed 12-MW, timber waste-fueled CHP plant in Enfield area of London
March 18, 2013
(ADP Renewable Energy Track)
– Ireland-based green energy firm Kedco plc (LON:KED) said today it still expected to reach financial close in the third quarter of 2013 on the key objective of its 12-MW Enfield biomass project in the London area.
In an update statement the developer said that the combined heat and power (CHP) project had secured a number of proposals for the provision of financing involving combined debt and equity or pure equity offers. Kedco has hired N+1 Singer as its equity adviser which is to help the firm assess the various proposals.
Furthermore, the company said that a major UK lender was willing to finance up to 70% of the project. The two parties are working towards a fully credit-approved term sheet.
The Enfield project holds full planning and environmental permits to use 60,000 tonnes of waste timber annually for the generation of up to 12 MW of power and heat. In its update Kedco said that it was discussing a possible boost in capacity with the Enfield Council.
The company has also obtained heads of terms from two large feedstock suppliers which are offering to source 100% of the feedstock needed for the CHP plant. Two major energy suppliers, on the other hand, have expressed their interest in purchasing all of the power output at the plant, while Kedco is in talks to sell the produced heat to a “large multinational corporate”, it said in the update. The potential debt and equity funders are to have their say on the proposals before the final decisions are made, Kedco said.
Last but not least, the developer said it had inked a grid connection agreement with UK Power Networks.
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