Acuity advised long-standing renewable energy developer Eco2 and its shareholders on the sale of its 40MW waste wood-fired biomass plant located near Margam, South Wales to Glennmont Partners, a fund manager focusing exclusively on investment in clean energy infrastructure biomass plant, in a deal worth in excess of £160 million. Further funding will be provided by Deutsche Bank AG, supported by Danish export credit agency Eksport Kredit Fonden.
We worked closely with the management team at Eco2 for over 18 months providing a combination of corporate, property, commercial and finance expertise to bring the deal to a successful close.
The sale marks the successful completion of a joint venture between Eco2 and the Western Logs Group. The power station will be built by a consortium consisting of Danish company Babcock Wilcox Volund and Interserve Construction. BW Volund will also operate the plant.
Eco2 chief executive Dr David Williams said: “This is the fifth of our biomass developments to be funded in the UK. It is the second project in South Wales and the second project that we have completed with the partners at Glennmont. On the legal side we were again supported by Acuity and we were delighted by the service that we received and the quality of the advice over the full course of the project. To succeed with a project such as Margam you need long standing and trusted legal advisers who can deal with a vast range of issues and Acuity ticked all of the boxes.”
The project will be managed on behalf of its owners by Eco2 Management Services under a management services agreement prepared and negotiated by Acuity. Wood for the project will be supplied by Stobart Group under largest ever 'fuel supply contract' worth £110 million.
Michael Volkermann, head of infrastructure and energy finance for EMEA at Deutsche Bank, said: “We are delighted to be involved in this important project that will deliver a new source of renewable energy to Wales and the UK.”
Kim Richter, senior director for SME and Cleantech at EKF (Eksport Kredit Fonden), said: “We have been very pleased working with the professional partners involved in making this project possible.”
Christian Farrow, Corporate Partner of Acuity and head of the Acuity energy team, said: “Our dedicated energy team provided project support and legal advice from the very early days of the project and achieving a successful completion of this complex deal was the culmination of a coordinated effort across multiple legal disciplines within Acuity. We are delighted to add the Margam project to our extensive portfolio of energy work and very much look forward to continuing to work with Eco2 to develop further renewable projects in the UK and overseas.”
Steve Berry, Chairman of Acuity commented: “The Acuity team is once again recognised for its ability to advise and to deliver on high value and complex transactions. Our strategy is to provide a city of London quality service in a cost effective and commercial manner and we are pleased to have achieved this with Eco2 and the Margam project. This deal consolidates our national reputation for advising entrepreneurial clients such as Eco2 on projects and transactions.”