Investors behind a cancelled energy from waste plant in East Yorkshire have been told success with other regional projects in the developer’s portfolio should ensure outlays are fully recouped.
Irish renewables business Solar 21 - behind plans for a £1 billion North Lincolnshire Energy Park - has been forced to pull out of the scheme at Melton, after its major technology provider collapsed. The 26MW plant would have converted 250,000 tonnes of refuse-derived fuel on a four acre site, saving 80,000 tonnes of CO2 annually, taking materials processed by neighbouring company Transwaste. Hull’s Ashcourt Group had also been appointed to deliver the civils.
Now, after enhancing its proposal to provide improved terms, brokers and investors have backed arrangements put forward by two fundraising companies it controls, and they have been convened by a High Court judge.
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Solar 21 and Greenzone Consulting Ltd have also voluntarily committed an additional £30 million to the original proposal, upping the return from 80 per cent to 100 per cent should the schemes be realised as expected.
These include the major proposal for land west of Scunthorpe, which is currently going through examination by the Planning Inspectorate, as well as its Tansterne Biomass project and the Plaxton Biogas project, both also located in East Yorkshire.
The schemes of arrangement were originally put to investors in May, with 1,760 of them - some 57 per cent representing more than £100 million of project funding - pledging support.
The law firm representing a small minority of brokers originally opposing them have now concluded that the updated terms “represent the best possible outcome” and that they “cannot improve on them”. Investors will now be invited to review them with a vote to be taken in September.
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Michael Bradley, chief executive of Solar 21, said: “We are delighted that the schemes of arrangement have been convened. It means that investors now have an opportunity to consider and vote on whether the schemes present the best opportunity for them to recoup the greatest possible return, and possibly, the entirety of their original investment.
“The feedback we have received from investors supports our belief that the majority have always wanted to have their say, and with the Schemes being convened, they will now get that opportunity.
“We fully recognise that this has been a worrying time for investors. Our focus will now turn to delivering the projects within the Schemes and returning as much money as possible to the investors.”
Described as the business’s flagship project, North Lincolnshire Energy Park proposes a 95MW waste-to-energy plant, 30MW of battery storage and 10MW of green hydrogen production and storage. It would also create a hub for allied manufacturing using by-products, with potential to support district heat and steam networks. More than 250 jobs have been eyed.
Transwaste has said the loss of the project at Melton doesn't effect its growth plans for the site.