A Copenhagen Infrastructure Partners (CIP) fund called Copenhagen Infrastructure II -including PensionDanmark and 18 other institutional investors – has teamed up with Burmeister & Wain Scandinavian Contractor (BWSC) to acquire the Kent biomass-fired combined heat and power (CHP) plant project.
Earlier today, the parties signed a contract for the GBP 160m project located in Kent in southern England. The Kent power plant will have a capacity of 27.8 MW, corresponding to the power consumption of 50,000 households, and will mainly be using locally sourced wood. The plant will be constructed by BWSC and is expected to be in operation in the summer of 2018.
BWSC will provide the Danish biomass energy technology to be used at the Kent facility and will also be responsible for the operation and maintenance of the plant under an O&M contract for up to 20 years. Heat and some of the power will be delivered to Discovery Park, a major business park located in Kent. The plant will deliver annual CO2 savings of approximately 100,000 tonnes.
“The Kent power plant is yet another example of our strong business relationship with CIP and BWSC in extension of our investment in the Brigg biomass power plant earlier this year, which we’re extremely pleased with. Kent is PensionDanmark’s fourth biomass power plant investment in the UK and our third co-investment with BWSC. The joint venture model we’re applying provides an attractive return to PensionDanmark with limited risk. It also helps us contribute to the transition towards a green economy and to increase Denmark’s energy technology exports, so we see a strong potential in this type of partnership” said PensionDanmark CEO Torben Möger Pedersen.