Linklaters advises on debt financing for MGT’s Tees Renewable Energy Plant
Linklaters has advised the lenders on the multi-source financing of the world’s largest new-build biomass power plant.
The project also represents the first dedicated biomass plant to have successfully been financed under the contract for difference (CfD) regime. Earlier this year, Linklaters advised on the project financing of the CfD supported Dudgeon and Beatrice offshore wind farms, the latter of which represents the largest CfD supported project to have reached financial close to date.
The Teesside combined heat and power biomass project is located in the Tees Valley in north-east England and has an output capacity of 299MW. The plant is expected to be able to generate enough energy to power 600,000 homes. The project was originally developed by MGT Power, with both Macquarie and PKA becoming shareholders at financial close.
Linklaters partner Richard Coar said: "We are delighted to have been involved in another landmark transaction for the UK renewable industry. Financing biomass projects has never been easy, particularly larger scale plants such as Teesside. That being said, successfully reaching financial close demonstrates that, even in the current climate, complex transactions like this can still be structured in innovative ways to attract sufficient domestic and foreign investment."
The Linklaters team was led by Energy and Infrastructure partners Richard Coar, Stuart Rowson, Jeremy Gewirtz and Stephen Le Vesconte; managing associates Ross Schloeffel, Francesca Matthews, Hannah Bronwin and Calvin Ng; and associates Codie Asimus, Nicholas Howarth and Gitanjali Shankar.