Kedco names funding partner, technical advisor for Enfield projec
Ireland-based Kedco plc has announced the Foresight Group as the preferred funding partner for its proposed 12 MW Enfield Biomass combined-heat-and-power (CHP) project in London, which is expected to break ground during the third quarter of 2013.The companies have signed a non-binding heads of terms for the provision of debt and equity facilities, which will help fund the construction and operation of the project. According to Kedco, the heads of terms are subject to the completion of due diligence, legal documentation and final investment committee approval.
Under the heads of terms, Kedco will retain a substantial equity participation in the project and will not be required to invest any additional funds on financial close. Information released by Kedco also notes that the financing structure will require a co-investor to invest alongside Foresight.
In a statement announcing the heads of terms, Kedco said that Foresight is expected to provide funding through its existing funds under management, including the Foresight Environmental Fund. A cornerstone of the fund was the London Green Fund.
“The Board is delighted to have appointed Foresight as our preferred funding partner for the Enfield Biomass CHP project,” said Gerry Madden, CEO of Kedco. Foresight has been actively involved in the funding of Biomass CHP projects in the UK and we look forward to working with them to achieve financial close in the near future.”
Kedco has also appointed Fichtner Consulting Engineers Ltd. as technical advisors on the project. Fichtner will manage the tender process for the EPC contract and negotiate with entities offtaking heat from the project. According to Kedco, the tender process for the EPC contract has commenced and discussions with contractors are ongoing.
The Enfield Biomass project is being developed by Kedco’s wholly owned subsidiary Enfield Biomass Ltd. The project received planning permission from the Enfield Borough Council.
Kedco issued an update of the project in mid-March. At that time the company noted heads of terms had been received from two large feedstock suppliers for 100 percent of the feedstock required by the proposed plant. Power purchase agreements were also in the works with two major energy suppliers to purchase 100 percent of the plant’s power output. In addition, Kedco noted that detailed discussions had been taking place with a large multinational corporation to purchase all of the heat generated at the proposed plant.