A Lincolnshire biomass plant has received a vote of confidence after securing a £150 million refinancing deal.
Glennmont Partners has arranged the refinancing of the Sleaford Renewable Energy Plant in what is believed to be the largest institutional-only financing plan in the UK biomass sector to date.
The 40W straw-burning plant has been in operation since 2014 and is operated by Burmeister & Wain Scandinavian Contractor (BWSC).
It had previously relied on government subsidies which have helped many renewable energies avoid massive price fluctuations seen with other energy supplies.
The deal was completed with the help of Deutsche Bank, who acted as sole lead Arranger, Agent, Security Trustee and Account Bank for the transaction.
Joost Bergsma, chief executive of Glennmont Partners, said: “Glennmont is delighted to be completing one of the largest biomass transactions of 2017 for £150m.
“This transaction further highlights that biomass is a highly efficient renewable energy technology capable of attracting significant amounts of long term, competitive institutional capital.
“The refinancing complements our strategy of building portfolios of renewable projects diversified by both geography and technology in order to provide predictable returns to investors.
“The energy market is as diverse as it has ever been with new technologies and new market structures offering investors a wide range of opportunities to invest in clean energy.”