Independent UK law firm Burges Salmon has advised on a circa £100 million debt financing, made available to the Greenvolt Group, to finance the acquisition of Kent Renewable Energy Ltd which owns a biomass renewable heat and power generation plant in the South East of England. Greenvolt is one of the European leaders in the promotion and development of European renewable energy projects.
The Kent renewable biomass plant is fully operational, and has a production capacity in excess of 28MW of electricity and 25 MWth of heat. Last year, the plant generated approximately 210.8 GWh of energy, which is equivalent to supplying power to 50,000 homes and saving around 45,000 tonnes of CO2 emissions annually. It provides heat and electricity to surrounding industrial parks, with the surplus being fed into the national grid. The financing is provided by Investec, Allied Irish Banks and Banco Sabadell.
Stuart McMillan, head of the firm’s Infrastructure practice, led the multi-disciplinary team advising on the transaction. Stuart was supported by a team of energy finance specialists from across the firm including Amy McVey, Luke Addison, Thomas Papke, and Alistair Rattray.
Stuart McMillan comments: “Biomass is one of the largest sources of renewable energy consumed in the UK, and is therefore a crucial component of the renewable energy sector, playing a vital role in decarbonising electricity generation and heat provision. We’re delighted to have advised the lenders on this major acquisition financing, supporting Greenvolt’s growth within the UK market, and contributing to the UK’s goal of achieving net zero by 2050.”
CIBC acted as debt advisor for the transaction.