Kedco secures loans for 4-MW biomass power and heat plant
Nov 14, 2011 - Ireland-based waste-to-energy firm Kedco plc (LON:KED) has secured financing to complete a 4-MW biomass electricity and heat generating facility in Newry, Northern Ireland.
The company said on Monday that Best Kedco Ltd (BKL), its joint venture created to develop the plant, has agreed to receive up to GBP 9.44 million (USD 15.2m/EUR 11m) in loans from Ulster Bank Group, part of the Royal Bank of Scotland plc (LON:RBS).
The financing includes a GBP-7.94-million construction facility to be provided in two stages -- GBP 4 million to complete an initial capacity of 2 MW, while the other GBP 3.94 million will be released once the initial capacity has been commissioned, which is expected to happen in the second quarter of 2012.
Kedco has so far invested GBP 6.1 million in the plant's construction.
Meanwhile, Kedco's major shareholder, Farmer Business Developments (FBD), has agreed to replace its previous joint venture partner in BKL. FBD will acquire a stake of 50% in the venture, while the share it would receive from BKL's profits will be based on its capital contribution to the project, initially about 8%.
Kedco estimates that when completed the plant will supply some 29 million Kwh per year to Northern Ireland's grid.