GIG in maiden deal following Macquarie takeover

The revamped Green Investment Bank has backed a UK-based energy-from-waste plant worth about £360m.

Macquarie has sealed its first investment as owner of the Green Investment Group after it backed a 70MW energy-from-waste facility in the UK as part of a £207 million ($272.2 million; €225.7 million) debt package.

The newly named Green Investment Group provided £38 million of the debt for the project and was joined by Investec, Crédit Agricole Corporate & Investment Bank, Mitsubishi UFJ Financial Group and Banco de Sabadell. The Ferrybridge Multifuel 2 has a total cost of about £360 million and is jointly owned by SSE and Wheelabrator Technologies.

Construction already began more than a year ago and the plant is expected to be completed and operational in the third quarter of 2019. The first instalment of the site has a similar size and became operational in July 2015.

The Green Investment Group has previously funded projects developed by Wheelabrator Technologies, backing the 43MW combined heat and power plant in Kent last year – the first large-scale energy-from-waste facility supported by the UK’s Contract for Difference system. Wheelabrator was bought by private equity firm Energy Capital Partners in 2014 for $1.9 billion.

Aside from large-ticket items in the offshore wind space amounting to £1.5 billion, waste and bioenergy projects were the largest beneficiaries of the former Green Investment Bank’s funds, with the vehicle committing £667.4 million to such technologies from 2012 to 2016.

“This first transaction under Macquarie ownership builds upon our well-established investment strategy,” said Edward Northam, the new head of the Green Investment Group. “Working with Wheelabrator Technologies, we have helped finance the construction of major new energy infrastructure in West Yorkshire and facilitated the continued growth of the UK merchant energy-from-waste market.”