InterGen Completes Financing on 300-Megawatt Spalding Energy Expansion Project in UK
SPALDING, UK – 27 February 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.”
InterGen is a global power generation firm with 11 power plants in operation, representing a total generation capacity of 6,824 megawatts (5,180 net equity MW) and including a wind farm. In addition, InterGen operates three compression facilities and a 65-km gas pipeline. These facilities are located in the United Kingdom, Mexico and Australia. InterGen is jointly owned by the Ontario Teachers’ Pension Plan and China Huaneng Group/Guangdong Yudean Group. For more information, visit www.InterGen.com.
ABOUT SPALDING ENERGY EXPANSION
InterGen will expand its existing gas-fired power station in Spalding by constructing and operating a new open cycle gas turbine unit of approximately 300 megawatts. The expansion is on land adjacent to the existing power station. InterGen received its original Section 36 planning consent for the project from the Department of Energy and Climate Change in November 2010 and a revised consent in January 2018 from the Department of Business, Energy and Industrial Strategy.
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Carrie K. Griffiths
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Santander Global Corporate Banking
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