Kedco Plc (KED), an Irish developer of power from wood and waste, received approaches from companies seeking stakes in its projects as it adds biomass plants in the U.K.
British and international companies are interested in buying equity stakes in its assets, Chief Executive Officer Gerard Madden said by telephone. Kedco intends to retain “significant equity” in any project it builds, owns and operates, he said.
The Cork-based company plans to build five biomass plants in the U.K. for 59 million pounds ($94 million), funded with about 70 percent debt and the rest equity. It’s among clean- power developers expanding in Britain as the country seeks to get 15 percent of its energy from renewable sources by 2020. The government estimates as much as half of that may be generated from biomass, which includes municipal waste, wood and straw.
Potential investors range from private-equity firms to industrial companies already involved in the biomass business, Madden said yesterday. Those companies may want to deploy their own technology or expertise as well as taking an equity stake, according to the CEO.
Kedco is working on a project in Newry in Ireland, another in London, two in Derbyshire in northern England and a fifth in southern England. It’s seeking to conclude financing for its 45 million-pound London venture by the third quarter. The Newry site is already financed, having received a 9.44 million-pound loan from Royal Bank of Scotland Group Plc (RBS)’s Ulster Bank unit in November.
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