Statkraft signs PPA extension with UK biomass plant until 2034

By Statkraft | July 02, 2020

Statkraft has extended a power purchase agreement (PPA) to continue the offtake of power from Greencoat Capital’s 34 MW Sleaford Biomass plant.

Greencoat Capital are one of the largest investors in the U.K. renewable energy market owning and operating projects in a variety of sectors including onshore wind, solar PV and bioenergy.   

Statkraft previously entered into a long-term PPA for Sleaford Renewable Energy Plant with the project’s original owners in 2011. The project became operational in 2014. The original PPA which was set to expire in 2027 has now been extended to 2034 as required by Greencoat and their funders.

The project, located in Lincolnshire, is one of the few biomass projects in the U.K. that is predominantly straw fueled.

As part of the project’s financing requirements and Greencoat’s acquisition, Statkraft were pleased to provide an offer to extend the PPA and to continue purchasing all electrical output and other benefits including Renewable Energy Certificate (ROCs) until 2034. As part of this process Statkraft also agreed to extend floor prices until the end of 2032.

Minal Patel at Greencoat said, “As part of the acquisition and financing of Sleaford we had specific requirements for the long term PPA. Statkraft were flexible and were able to restructure their existing PPA in order to meet our requirements and to do so within the necessary timescales for the transaction.” 

John Puddephatt, head of long term PPA origination, stated, “We already have an existing relationship with Greencoat via a number of their onshore wind and solar projects for which we have PPAs in place. We are very pleased to now work with them on this biomass project. The revised commercial terms work well for Greencoat and Statkraft and both parties will also benefit from the introduction of our self-billing system and other PPA updates that will help minimize administration for both sides.”