InterGen Completes Financing on 300-Megawatt
Spalding Energy Expansion Project in UK
New project has 15-year capacity agreement
SPALDING, UK – February 27, 2018 – InterGen announced today the financial close of credit facilities for its 300-megawatt natural gas-fired Spalding Energy Expansion project in Spalding, Lincolnshire, England. InterGen has appointed Santander and Nord LB for the limited recourse financing.
The £100 million project has a 15-year capacity agreement following a successful bid in the Government’s December 2016 capacity auction. The project is the first and, to date, only large scale, thermal project to secure limited recourse financing based on the 15-year capacity agreement.
The project has also signed a contract with Siemens for an F-class gas turbine, with construction and balance of plant services provided by the Atlantic Projects Company UK and gas infrastructure by Darke Engineering. Construction is expected to be completed in June 2019. Hundreds of local jobs will be created during construction.
“I am very pleased that our project achieved financial closing. Spalding Energy Expansion will provide much needed peaking capacity to the grid for UK electricity consumers. As well, the project is close to existing gas and electrical infrastructure and will benefit from our UK platform, including the adjacent Spalding Power Station,” said Tim Menzie, InterGen’s CEO.
Alejandro Ciruelos, head of project and acquisition finance infrastructure, Santander Corporate Banking UK, said, “We are extremely pleased to be supporting InterGen in the Spalding Energy Expansion Project from a financing perspective. This is a landmark transaction in the UK power market as it will provide our electricity system with additional flexibility to react promptly to sudden variations in consumer demand or unplanned outages in baseload power generation.”
"Huge thanks go to the numerous people involved in the project, with special mention of Project Director Morris van Looy," said Mark Somerset, VP of Europe Middle East Africa region. "Morris had the initial idea to establish an OCGT next to Spalding, and he has subsequently managed the project from inception right through to financial close. He has provided the energy and inspiration for his team to draw upon and to deliver results. Congratulations on a great effort by Morris and his team."
For more information about Spalding Energy Expansion, click here http://www.intergen.com/development-opportunities-portfolio/spalding-energy-expansion