Plans for a new energy from waste plant in Wales have been given a boost by news that the Green Investment Bank will commit £35 million of funding towards the project.
The development is being time-tabled for a 2019 completion date and is expected to provide a powerful economic boost to the local area by creating hundreds of construction jobs and up to 35 sustainable and skilled roles once the plant is fully operational.
It is expected to cost up to £180 million and will also be backed by a private consortium of investors comprising Natixis, Siemens Bank and Mitsubishi UFJ Financial Group. An equity bridging product will be provided by Barclays Bank.
The new Parc Adfer Energy from Waste plant will produce up to 133 GwH of clean energy every year once it is in full operation. It will also cut up to 21,000 tonnes of damaging greenhouse gas emissions and divert as much as 200,000 tonnes of waste away from landfill.
Edward Northam, who heads up the investment banking wing of the Green Investment Bank, said that the Parc Adfer project was likely to be one of the final council-funded PPP projects in the UK, coming at the end of a two-decade-long programme and signalling a fresh era of financing for waste infrastructure. Already, investors are looking at the opportunities that new types of merchant infrastructure could bring. The GIB believes that these will need an additional funding level of £3.6 billion by 2020.
The plant will be constructed and managed by a private and public partnership with five of North Wales' local authorities.
The Green Investment Bank was set up by the UK government to help attract private finance to the developing green energy sector.