Linklaters has advised lenders on the €170m acquisition and financing of a straw-fired biomass plant, reinforcing the firm’s market-leading reputation in biomass and the wider renewables sector.
The project, which has been developed to date by Eco2, was acquired by the BNP Paribas Clean Energy Fund as part of the same transaction. The 38MW power plant, which is scheduled to be operational in mid 2014, will be constructed just outside Sleaford in Lincolnshire and will run primarily on locally harvested straw.
The banking syndicate comprised NIBC Financing N.V., The Royal Bank of Scotland plc, Siemens Bank GmbH and UniCredit Bank AG.
The Linklaters team was led by energy & infrastructure partners, John Maxwell and Richard Coar.
Richard Coar said:
“The successful financing of the project, especially considering the current economic climate, is very positive news for the biomass sector. There has been uncertainty as to whether biomass can be project-financed due to a number of factors (such as the fuel supply arrangements). In fact, this is the first project-financed biomass deal in the UK for five years. This project sends a clear signal that these factors can be addressed in a manner which is acceptable to both lenders and sponsors alike. We are delighted to have been involved in this project. Biomass has a crucial role to play in the successful achievement of the UK’s 2020 renewables target. We hope that the Sleaford project will be the first of many of the current biomass projects to successfully attract financing.”
ENDS
For further information, please contact Katie Taylor on +44 20 7456 2287 or Rupert Winlaw on +44 20 7456 3219
Notes to editors:
Linklaters LLP is a leading global law firm, supporting clients in achieving their strategies wherever they do business. We use our expertise and resources to help clients pursue opportunities and manage risk across emerging and developed markets around the world.
- The firm's Global Energy & Infrastructure Group which, with more than 150 lawyers, is one of the world’s largest, has unparalleled experience of advising governments, sponsors, investors, banks, ECAs and MLAs on financing, developing and the acquisition of projects and utilities in the energy & natural resources and infrastructure sectors. Our practice covers the full range of infrastructure transactions, including: roads, airports; bridges & tunnels; health; education; defence; ports; rail; stadiums; telecoms; oil & gas; LNG; clean energy; nuclear; power; refining and petrochemicals; mining and water.
- Linklaters is a market leader in international project and acquisition transactions and PFI/PPP both in terms of sector experience and global coverage. We have dedicated energy and infrastructure partners in the UK, New York, France, Germany, Spain, Portugal, Italy, Moscow, CEE, Dubai, China, Tokyo, Thailand, Singapore and Brazil.
