Acquisition of biomass power plant

Aug 2016
Deal Value:
GBP 150 million
Structured auction
Energy and Infrastructure

FIH Partners advised the Danish pension fund PKA on the acquisition of 50% of the biomass-fired combined heat and power plant Tees Renewable Energy Plant (Tees REP) in the UK. The biomass power plant will have a capacity of 299MW and will be fuelled by wood pellets and chips.The power plant has been developed by MGT Power and is located in North-East England near Middlesbrough. The power plant is expected to be in operation by 2020.
The power plant will be constructed under a fully turn-key contract for engineering, procurement and construction via a joint venture of Samsung C&T and Tecnicas Reunidas, an operations and maintenance agreement with Fortum and a fuel supply agreement with Enviva.
Total investment in Tees REP is expected to be approx. GBP 900 million. PKA is investing approx. GBP 150 million and will hold 50% of the equity with Macquarie Capital holding the remaining 50%. In addition, more than GBP 650 million of senior debt has been raised to finance the project.
FIH Partners acted as exclusive financial advisor to PKA.