Bioenergy Infrastructure Group obtained finance for a 25 MW waste-to-power plant in Hull that’s the first in the U.K. to include a Contract for Difference (CfD) with the government to smooth out prices for the power it generates.
The group was formed by four investors on Oct. 1 with the aim to become the nation’s biggest producer of biomass electricity, Bioenergy said on Monday. The Energy Works Hull project is a 200 million-pound ($303 million) plant on a 7.5-acre site and joins the 21.5 MW Ince Biopower wood-burning power plant in the county of Cheshire, which was opened last month. It will produce enough power for 43,000 homes.
Bionenergy secured a 15-year power purchase agreement for the Energy Works as well as a CfD for the same duration. A CfD is an agreement that sets a so-called strike price for power over the duration of the deal, giving developers certainty over what their plants will earn instead of making them depend on market prices.
The Bionenergy Group comprises investors Aurium Capital Markets, the Foresight Group, Helios Energy Investments and Infracapital.
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Lead image: Waste to energy. Credit: Shutterstock.