Helius loses potential equity partner for 100-MW UK biomass project

Sep 16, 2014 - UK firm Helius Energy Plc (LON:HEGY) said today it had lost one of its potential partners for the financing of the 100-MW Avonmouth biomass energy project at the Port of Bristol.

At the start of the month, Helius announced that Australia’s Macquarie Group Ltd (ASX:MQG), which had been tasked with coordinating the recruitment of equity for the scheme, had shortlisted several potential equity contributors, including an investment-grade industrial partner. The latter was supposed to assume a direct operational involvement in the project, but has now decided to refrain from taking part in it, Helius announced.

The UK company and Macquarie will continue work with the other potential equity participants on the project financing. At the same time, Helius’ board will review the strategic alternatives for the firm to boost value from the Avonmouth scheme and its wider project portfolio. However, the company stressed that it will not consider bids for the entire business.

As Helius has only secured working capital until November 2014, it will need to realise value from its projects in the event that funding for the Avonmouth scheme is not obtained.

The specific 100-MW project qualifies to receive a government-backed loan guarantee for a proportion of its senior debt. Helius has estimated it will need around GBP 380 million (USD 615m/EUR 476m) to construct the plant. About GBP 155 million of the total could come from equity partners.

(GBP 1.0 = USD 1.619/EUR 1.253)

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