Kedco provides update of Enfield Biomass CHP project
Ireland-based Kedco plc has issued an update on its proposed 12 MW Enfield Biomass combined-heat-and-power plant under development in North London. According to Kedco, significant progress had been made on the project to date, including full planning and environmental permission take in 60,000 metric tons of waste woody biomass feedstock. In the update, Kedco notes that the project is on track to begin construction during the third quarter of 2013.
Regarding financing, Kedco said it has received a number of proposals for the project, including those that encompass funding on either a combined debt and equity, or a pure equity basis. To assist with the various proposals, Kedco has appointed N+1 Singer as its equity advisor for the project. In addition, Kedco announced it has received outline terms from a major U.K. bank for the provision of up to 70 percent of the project’s total cost.
The company is also in the process of finalizing contracts with two feedstock suppliers, which would provide 100 percent of the feedstock needed by the plant. In addition, Kedco has received headline terms from two energy suppliers interested in purchasing 100 percent of the plant’s power output. The final decision on a power purchase agreement will be made by the company’s board soon. Heads of terms are also being discussed for a heat off-take agreement. A grid connection agreement for the project has been signed with UK Power Networks, and a final decision on the preferred provider of the biomass CHP solution will be made soon in consultation with the project’s debt and equity funding partners. It is also possible that the project’s production capacity could be increased.
“The company has a clear plan in place for the Enfield Biomass CHP project with the key objective being to reach financial close by Q3 2013,” said Gerry Madden, CEO of Kedco, in a statement. “Given the flagship nature of the project, which is located in the London area within the M25, the company is pleased to have received numerous enquiries from various parties interested in participating in the Project, and we look forward to finalizing this shortly.”