Dec 20, 2012 - UK firm Drax Group (LON:DRX) today said it had obtained a GBP-100 million (USD 162.8m/EUR 122.7m) term loan from the UK's Green Investment Bank, the last piece of financing it needed for a coal-to-biomass conversion plan.
Green Investment Bank extended the loan together with M&G UK Companies Financing Fund and Prudential Plc (LON:PRU), which also lent GBP 100 million to Drax in July.
Last month, the British power producer also arranged with Barclays (LON:BARC), Lloyds Banking Group (LON:LLOY) and Royal Bank of Scotland (LON:RBS) a GBP-400-million revolving credit line due in April 2016, replacing a GBP-310-million revolver. It will use all the funds to convert most of its coal-fired Drax Power Station in Selby, northern England, to biomass.
The power producer previously said it would need between GBP 650 million and GBP 700 million to convert half of the power generators at the site from coal to biomass in order to take advantage of government incentives. In October it raised GBP 190 million in an equity sale.
Veselina Petrova is one of Renewables Now's most experienced green energy writers. For several years she has been keeping track of game-changing events both large and small projects and across the globe.