Green Investment Bank buys into 14.7-MW Welsh biomass plant

Oct 1, 2013 - UK's Green Investment Bank (GIB) said on Monday it had made and investment in a 14.7-MW biomass plant in Wales, owned by Western Bio-energy Ltd in order to support certain upgrades there and grab a minority interest.

The Port Talbot plant has been generating power since 2008 and is currently able to produce enough electricity for more than 28,000 households.

The GBP 11 million (USD 18m/EUR 13m) investment will be made through the UK Green and Sustainable Waste and Energy Investment KP fund, managed by Greensphere Capital LLC, in which GIB is a cornerstone investor. Co-investment was provided by Signia Wealth Management and Stobart Group Plc (LON:STOB).

The capital injection will help upgrade the biomass facility. In addition, it is seen to enhance its efficiency and sustainability, GIB’s chief executive Shaun Kingsbury noted. Improvements will include boosting to 55% the share of Grade A waste wood in the plant's feedstock and modernisation, expected to be implemented next summer.

The Greensphere fund was established to back the British waste wood biomass segment. The investment in the Wales plant is its first acquisition of an operational facility.

(GBP 1.0 = USD 1.623/EUR 1.198)

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