Travers Smith LLP has advised existing client Estover Energy in connection with the financing of a new biomass Combined Heat and Power (CHP) plant in Cramlington, Northumberland, which is due to be completed by Estover by late 2017.
The Cramlington CHP will supply electricity and heat to local businesses, as well as provide low carbon electricity to the National Grid. The 27.7MWe plant will power the equivalent of 52,000 homes and will reduce greenhouse gas emissions by the equivalent of taking 25,000 cars off the road per year.
Funding has been raised through an equity commitment of £48m of equity by John Laing Group Plc and the UK Green Investment Bank together with £90m of debt from Barclays Bank plc, with an export credit guarantee from Eksport Kredit Fonden.
Estover will retain an equity stake in the project and a 12 year contract to provide ongoing general management, project and construction services as well as fuel management services for the project.
The Travers Smith team, which advised Estover Energy on this transaction, was led by corporate partner William Howard and included commercial consultant Alistair Wilson, tax associate Thomas Rickford and corporate associate Alex Dixon.
Advising Estover on this project follows recent advice given in relation to the Speyside CHP project earlier this year, which raised an aggregate of £74 million.