Nexterra consortium closes on financing of UK biomass gasification plant

Nexterra has reached a financial close on the Welland Waste Wood Power Plant, which will use the Vancouver, British Columbia-based company’s gasification technology. Nexterra also participated in the development and financing of the $75.6 million (£51.6 million) project, which is located in Northamptonshire, U.K. 

 

The Welland project is the second biomass gasification power plant developed in cooperation with London-based Balfour Beatty Investments (BBI), Cogen, MWH Treatment and Nexterra. The first project, near Birmingham, U.K., is under construction and expected to start up in 2016. 

 

The Welland power plant was funded by a consortium comprised of BBI, NOY Nexterra Holdings Limited Partnership  (a partnership between NOY Infrastructure Fund and Nexterra) and Equitix MA Infrastructure Fund. 

 

MWH Treatment  will design, construct, operate and maintain the plant. Nexterra will design and supply the complete biomass gasification-to-steam generation system from feedstock handling to emission controls, including four gasifiers, a high pressure boiler and a flue gas treatment system. 

 

Export Development Canada (EDC), Canada’s export credit agency, has provided performance support for Nexterra’s scope on the project. When the project is completed in 2017, it will convert 60,000 metric tons of dry locally sourced sustainable waste wood, which has been diverted from landfill, into 9 megawatts (MW) of electricity. 

 

The electricity generated by the facility will be exported to the national grid and will be enough to power more than 17,000 U.K. households per year and result in an annual saving of 28,000 metric tons of carbon dioxide, according to Nexterra. 

 

The Nexterra system qualifies as an Advanced Conversion Technology (ACT) under U.K. legislation, meaning that the power generated by the project will receive the highest band of Renewables Obligation Certificates (ROCs). 

 

Laurie Tugman, chairman of Nexterra, says, “The Welland project is one of a pipeline of similar opportunities that we are developing with BBI. With this second project, Nexterra and BBI have established themselves as leaders in the U.K. waste-to-energy sector. Nexterra also continues to develop projects outside the U.K., including in North America.” 

 

Mike Scott, president and CEO for Nexterra Systems Corp., says, “We’re pleased to have the opportunity to participate in the development and execution of this project. We are excited to continue working with MWH, Cogen and Balfour Beatty and with our new partner NOY in implementing clean, energy solutions in the U.K.”