Renewable Energy Generation Ltd., a developer of low-carbon assets backed by BlackRock Inc., plans to build a facility with Finning U.K. Ltd. and the finance arm of Caterpillar Inc. to provide power from waste cooking oil.
The plant in Yorkshire, northeast England, will cost 6.3 million pounds ($10.4 million) and have a capacity of 18 megawatts, Guildford, Surrey-based REG said today in a statement on its website. Finning will design, build and maintain the project that will use fuel from recycled waste cooking oil to generate electricity.
REG will provide an initial 15 percent of the funding. Once the unit is working in the second half of this year, Caterpillar will provide 70 percent of the project costs through a long-term debt facility. The balance will be provided by REG, the statement said.
REG said in October it may invest as much as 300 million pounds in onshore wind, solar and bio-energy projects over the next three to four years. It seeks to exploit demand for renewables in the U.K. as the nation strives for 15 percent of its energy to come from clean sources by 2020, from about 9.4 percent now.
A year ago, BlackRock bought wind farms from REG and agreed on a five-year partnership that allows it to buy more plants from the developer.