Finland’s export credit agency Finnvera will support funding of the Tees Renewable Energy plant – the world’s largest power plant fuelled solely by biomass, to be built in the UK.
The project, price tagged at £900mn, has now closed financing which consists of £650mn of debt and £250mn of equity.
The debt is provided by 11 lenders in total, including £100mn from Finnvera, a spokesperson for project management group MGT Teeside tells GTR.
The other 10 lenders are Lloyds, Natixis, SMBC, Shinsei Bank, Development Bank of Japan, Korean Development Bank, Santander, Hastings, Edmund de Rothschild Asset Management and Macquarie Bank.
Meanwhile, the equity for the project is provided by Macquarie Bank and Danish pension fund PKA, who now each own 50% of the project.
Early construction of the plant, which will be located in Middlesborough, England, is due to begin within the next few months with commercial operations scheduled to start in first quarter 2020.
The 299MW power plant will be fueled solely by clean wood pellets and chips.
The project, which will use fuel from responsibly managed forests and is to support the UK and European Unions (EU) carbon emissions reduction targets, is hailed as a good example that biomass can be used to fuel large baseload plants.