Biomass projects head for the highlands
Nine biomass plants could be built in Scotland, UK, if a funding programme is fruitful.
UK-based investment company Invicta Capital has launched a fund aiming to raise £300 million (€336.5 million) to invest in the plants, which will produce up to 90 megawatts (MW) of renewable energy.
The plants will produce enough power to supply 140,000 homes using biomass technology whereby organic material is cooked in a low-oxygen environment to produce gas used to generate electricity.
The fund is unusual among renewable energy vehicles because it has specified the form of technology as well as identifying sites where it will set up power plants.
Contracts for both the fuel supply and energy produced are already in place and the fund will aim to pay a net annual return of 8%.
At the end of a five-year term, the fund will seek a trade sale or capital markets transaction involving bank debt or an IPO to
return funds to investors.
The power generated will be eligible for renewable obligation certificates, issued by the government to accredited generators, which can be traded.
UK-based investment company Invicta Capital has launched a fund aiming to raise £300 million (€336.5 million) to invest in the plants, which will produce up to 90 megawatts (MW) of renewable energy.
The plants will produce enough power to supply 140,000 homes using biomass technology whereby organic material is cooked in a low-oxygen environment to produce gas used to generate electricity.
The fund is unusual among renewable energy vehicles because it has specified the form of technology as well as identifying sites where it will set up power plants.
Contracts for both the fuel supply and energy produced are already in place and the fund will aim to pay a net annual return of 8%.
At the end of a five-year term, the fund will seek a trade sale or capital markets transaction involving bank debt or an IPO to
return funds to investors.
The power generated will be eligible for renewable obligation certificates, issued by the government to accredited generators, which can be traded.
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