Lloyds Banking Group may extend financing in 2014 for a UK-based CHP biomass plant with a capacity of up to 20 MW, but lender will wait to make final decision until after plant's owner signs wood pellet delivery contract, finds report

December 11, 2013 () – UK lender Lloyds Banking Group Plc (LON:LLOY) may finance an up to 20-MW combined heat and power (CHP) biomass plant project at home, offshore wind parks and a project for the biomass conversion of a coal-fired power plant, Bloomberg said Tuesday.

The banking giant might extend financing for the utility-scale biomass plant next year. It will wait till the project owner signs contracts for wood pellets delivery, before deciding whether it would help finance the conversion, the news agency cited infrastructure and energy finance senior director Alan White as saying.

The British lender, which last year provided about GBP 330 million (USD 542m/EUR 394m) to renewable energy projects, could not reach that level of investment this year due to policy changes. Yet, for 2014 and 2015 the figure is expected to rise as developers bring more projects to market, following the government’s announcement of the strike prices for all renewable energy technologies. White did not give any projections.

Last week the Department of Energy & Climate Change (DECC) lifted the preferential rates till 2019 for electricity from offshore wind, hydropower and geothermal power plants, but lowered rates for onshore wind and large-scale photovoltaics (PV).

(GBP 1.0 = USD 1.644/EUR 1.195)

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