This is the third time PensionDanmark invests in a new biomass-fuelled power plant in the UK. The Brite power plant in Rotherham near Sheffield is scheduled for completion in the spring of 2017.
PensionDanmark's investment takes place via the Copenhagen Infrastructure II (CI II) fund, which invests a total of DKK 1.6 billion in the power plant. The fund currently has ten institutional investors and a total commitment of just over DKK 8 billion. PensionDanmark has committed a total of DKK 3.5 billion to CI II.
The power plant will be constructed by a consortium comprising Babcock & Wilcox Vølund, headquartered in Esbjerg, Denmark, and UK-based company Interserve. Babcock & Wilcox Vølund will also be responsible for the subsequent operation and maintenance of the plant on a 15-20-year contract.
In addition to the Brite power plant, PensionDanmark is already participating in the establishment of two similar biomass-fuelled power plants in the UK - Brigg and Snetterton - through a joint venture between the Copenhagen Infrastructure I (CI I) fund and Burmeister & Wain Scandinavian Contractor A/S (BWSC). PensionDanmark is the sole investor in CI I.
"Our investments in the three British power plants with competent partners such as BWSC and now also Babcock & Wilcox Vølund will ensure our members a good return for many years to come, while helping to increase Danish energy technology exports. We therefore see strong potential in these types of partnerships," says CEO Torben Möger Pedersen, PensionDanmark.
The Brite power plant will have a capacity of 39.3 MW and be fuelled by locally collected waste wood that is currently being landfilled.
