Energy sector experts from leading UK law firm Burges Salmon have advised developer Estover Energy and project vehicle Speyside Renewable Energy Partnership Ltd (SREPL) on the development and financing of SREPL's new biomass Combined Heat and Power (CHP) plant in Speyside, Scotland.
The construction of the project has been funded by a public bond issue, guaranteed by Infrastructure UK (IUK) and is the first project finance bond issue guaranteed by IUK in the biomass sector. The bonds were admitted to trading on the London Stock Exchange on 29 August 2014.
The sponsors are UK Green Investment Bank plc, John Laing and Estover Energy Limited.
The £74 million Speyside CHP plant, situated near to the new Macallan distillery, will generate enough renewable energy to power more than 20,000 homes and create 123 jobs. The distillery will use the heat generated by the plant providing 90 per cent of all steam needed in the distillation process and contribute to reducing the cost of energy at The Macallan. By using biomass to generate heat instead of natural gas, the distillery will reduce its greenhouse gas emissions by over 17,500 tCO2e, equivalent to taking almost 8,000 cars off the road.
The Burges Salmon team was led by Energy partner Nick Churchward with associate Emma Andrews and included Banking and Finance partner Graham Soar with solicitor Alison Logan and Scottish Real Estate partner Euan Bremner with associate Ewen Cairns. The team advised Estover on all aspects of the development of the project from 2010 until the commencement of the financing process in 2013 during which the firm continued to advise SREPL on all Scottish law aspects of the development and financing of the Project.
Nick Churchward said: “Having advised on this project since its inception in 2010 we are delighted to have been part of a project team whose efforts will now generate jobs and contribute greatly to the renewable energy sector in the region. This exciting project is a significant stepping stone for Estover Energy, the project sponsors and renewables industry as a whole who are all working hard to deliver the Government's policy commitments with modern, clean renewable energy infrastructure.
'It is also another milestone for Burges Salmon's Energy team who have advised or are advising on a further eight UK biomass schemes since closing the award winning Helius Corde biomass project in 2012.”