Foresight Group LLP, a U.K. investor, will channel funds into Kedco Plc’s planned biomass facility in London and help raise further money for the project.
Foresight will provide funds for debt and equity to part finance construction and operation of the 12-megawatt project, Cork, Ireland-based Kedco said in a statement. A co-investor is needed to invest, it said. Foresight today confirmed the deal.
Kedco, which has invested more than 2 million pounds ($3 million) in the plant, will retain equity and won’t be required to invest further. Construction is due for the third quarter.
The U.K. Department of Energy and Climate Change estimates bioenergy plants may meet 8 percent to 11 percent of the nation’s primary energy demand by 2020.