Linklaters advises on financing for 300-Megawatt Spalding Energy Expansion Project in UK
InterGen announced today the financial close of credit facilities for its 300-megawatt natural gas-fired Spalding Energy Expansion project in Spalding, Lincolnshire, England. Linklaters advised Santander and Nord LB for the limited recourse financing for the project.
The £100 million project has a 15-year capacity agreement following a successful bid in the Government’s December 2016 capacity auction. The project is the first and, to date, only large scale, thermal project to secure limited recourse financing based on the 15-year capacity agreement.
The project has also signed a contract with Siemens for an F-class gas turbine, with construction and balance of plant services provided by the Atlantic Projects Company UK and gas infrastructure by Darke Engineering. Construction is expected to be completed in June 2019. Hundreds of local jobs will be created during construction.
Richard Coar, partner at Linklaters, says: “This is a landmark transaction in the UK power market, especially as it’s the first new build OCGT power station to have won a Capacity Market Agreement. It will set a precedent for similar projects in the future.”