Sita U.K. Gets Green Bank Loan for Waste-to-Energy FacilityLouise Downing
Sita U.K. Ltd., a unit of the French water company Suez Environnement, received a 20 million-pound ($32.7 million) loan from Britain’s Green Investment Bank for a waste-to-energy plant.
The 244 million-pound project will convert about 300,000 metric tons a year of household waste to power for as many as 50,000 homes, Sita said today in an e-mailed statement. It’s building the 33-megawatt facility in south Gloucestershire with Itochu Corp. and Scottish Widows Investment Partners. The project also includes two rail interchanges for the waste.
Sita hopes to gain from a landfill tax introduced in April 2012 to discourage companies and organizations from burying their waste underground. It’s signed a 760 million-pound 25-year contract with the West London Waste Authority and it will also sell energy to the grid. Sita forecasts the plant will generate 1.4 billion pounds of revenue in 25 years.
Sita and its partners are investing equal amounts of equity in the project. Credit Agricole Corporate & Investment Bank SA, Bank of Tokyo-Mitsubishi UFJ Ltd., Sumitomo Mitsui Banking Corp. and Mizuho Bank Ltd. and the GIB are providing the debt, of about 190 million pounds, a spokesman for Sita said by phone, declining to be named.
“With this project, every 1 pound of GIB investment brings 11 pounds of other capital, much of it from international investors,” said Shaun Kingsbury, chief executive officer of GIB.
Construction will start before year-end and the plant is expected to be completed in 2016, according to the statement.