Norton Rose Fulbright has advised Deutsche Bank AG, London Branch, Deutsche Bank S.A. and Eksport Kredit Fonden (EKF), the Danish Export Credit Agency, in relation to the financing, construction and operation of a new 40MW biomass energy facility at Port Talbot, Wales. The capital cost of The Margam Green Energy Project is £140 million.

Babcock & Wilcox Vølund A/S and Interserve Construction Limited will construct the facility over a two year period and thereafter the plant will be operated by Babcock & Wilcox Vølund A/S. The power offtaker is Centrica plc.

The project will be fuelled by waste wood supplied by Stobart and unlike a number of other biomass projects, fuel supply is pre-committed by Stobart for the full 15 year tenor of the debt.

Andrew Hedges, energy partner at global legal practice, Norton Rose Fulbright comments:

“This is one of the last biomass projects that will be supported under the UK’s Renewables Obligation (RO). It is nevertheless significant because, at 40MW, it occupies one tenth of the 400MW cap for the remaining biomass projects supported by the RO.”

The team comprised Andrew Hedges, assisted by Tim Baines on due diligence, regulatory, fuel supply and power offtake matters; Simon Currie, assisted by Mark Dennison, Dan Newcombe and Katie Whicher in relation to finance matters; Richard Hill, assisted by Katie Liszka and Tom Lindley on the construction and operational documents, Wasim Khan, Alex Common and Emily Colville on real estate matters; Matt Hodkin, Judy Harrison and Andrew James in relation to tax matters; and Nick Walker in relation to environmental and planning.