UK waste-to-energy project secures up to GBP 195m in funding

Aug 21, 2014 - UK firms Shanks Group Plc (LON:SKS) and Interserve Plc (LON:IRV) have agreed up to GBP 195 million (USD 323m/EUR 244m) in funding for a waste-to-energy project in Derby.

Waste management company Shanks and support services and construction group Interserve said today they would form a joint-venture called Resource Recovery Solutions (Derbyshire) Ltd (RRS) to build the plant, which is developed by the Derby City and Derbyshire County Councils.

The GBP-145-million Sinfin Lane project will include a Mechanical Biological Treatment (MBT) facility and an on-site gasification plant, to be supplied by local sector firm Energos and operated by Shanks itself. The project is seen to divert as much as 98% of the residual waste from landfill and also to produce enough power to meet the electricity needs of about 14,000 households. The generated power will be supplied to the national grid.

The up to GBP 195 million in funding the JV comes from the UK Green Investment Bank (GIB), Germany-based Bayerische Landesbank, also known as BayernLB, and Sumitomo Mitsui Banking Corporation of Japan. GIB said in a separate statement that each of the three lenders will provide a third of the total amount.

The project is expected to be finalised by April 2017.

The 27-year Public Private Partnership (PPP) contract with the councils under which the plants will be built and operated is estimated to generate some GBP 950 million in revenues.

(GBP 1.0 = USD 1.658/EUR 1.250)

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