Glennmont Partners has completed the purchase of the Port Clarence Energy Project on behalf of its clean energy fund, Glennmont Clean Energy Fund Europe II (“The Fund”), in an £160m deal. The Port Clarence Energy Project will see a new biomass power generation plant built at Port Clarence, Stockton-on-Tees, providing 40MW of CHP-enabled renewable energy to the UK Energy market. The plant is expected to become operational during the first quarter of 2018. The purchase and further construction of the Port Clarence Energy Project is being supported and debt arranged by Deutsche Bank and Danske Bank with the support of EKF, the export credit agency of Denmark.
The completion of this transaction is a significant step towards the full investment of The Fund into a portfolio that benefits from diversification across technologies and geographies. Glennmont’s second fund has completed six deals to date, comprising biomass, onshore wind and solar photovoltaics assets located in France, Italy, the UK and Portugal.
Glennmont Partners is delighted to bolster our biomass presence in Europe which now amounts to nearly 120MW across three sites. This deal consolidates Glennmont’s position as the UK’s pre-eminent investor in, and operator of, dedicated biomass plants and demonstrates to investors our commitment to keep building on our portfolio. This deal was completed in the midst of a difficult regulatory environment. Fuel for the plant will be sourced from the waste wood market and will be supplied by Stobart Biomass Products Limited under a long-term, indexed-linked fuel supply contract.