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Eco2 sells biomass plant for £160m

Renewable energy developer Eco2 has sold a 40MW biomass project in North East England to investors in a deal worth £160 million.

The Port Clarence energy project began two years ago and was jointly developed by Eco2 and Temporis Capital. It has been bought by Glennmont Partners, but Eco2 will continue to be responsible for the management.

The plant will be financed with equity from a fund managed by Glennmont, and debt arranged and provided by Deutsche Bank and Danske Bank.

The waste wood used to fire the power station will be diverted from landfill sites, and the project will have the capacity to consume approximately 250,000 tonnes of wood per year.

Over the last two years Eco2 has sold four biomass plants, raising a total of around £750 million.

Eco2 commercial director Darren Williams said the project will have a “significant impact on the locale”, by bringing an empty brownfield site back into production and creating jobs.

“This is the third project that we have completed with the partners at Glennmont over a six-year period,” he said. “We are proud to be managing the construction and operation of this development on behalf of its new owners.”