MVV Energie gets EUR 200m financing for UK energy-from-waste plant

Jul 16, 2012 - German utility MVV Energie AG (ETR:MVV1) has secured EUR 200 million (USD 245m) from German KfW IPEX-Bank and Swedish Svenska Handelsbanken (STO:SHB A) to fund the construction of a energy-from-waste plant in the UK.

The banks have provided equal shares of the financing, which is structured as a purpose-tied and unsecured corporate loan, KfW IPEX-Bank, a unit of German government-owned development bank KfW said on Monday. The European Investment Bank also intends to extend a long-term investment loan to MVV Energie for the facility, which will require a total investment of about EUR 250 million, according to the statement.

The project, located in Plymouth, southwestern England, is a public private sector partnership. MVV Energie's MVV Umwelt unit has been awarded a contract for the planning, construction and 25-year operation of the plant by the South West Devon Waste Partnership, which brings together three regional authorities. The combined heat and power facility will have a capacity to turn 265,000 tonnes of waste into energy per year and will supply the electricity and heat produced mainly to a British naval base in Plymouth.

Key components of the plant equipment would also be sourced from German firms, the statement noted.

(EUR 1.0 = USD 1.226)

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