02-02-2016 CIP, PensionDanmark and BWSC completes their first power plant ahead of schedule
Together with Copenhagen Infrastructure Partners and PensionDanmark, BWSC has today released the below statement to celebrate completion of the joint venture's first power plant investment:
The joint venture of Copenhagen Infrastructure Partners, PensionDanmark and BWSC completes construction of their GBP 162m biomass power plant investment in the UK well ahead of schedule.
In 2013, Burmeister & Wain Scandinavian Contractor A/S (BWSC) and Copenhagen Infrastructure Partners (CIP), together with PensionDanmark, formed a joint venture, BWSC PLC Ltd. (BPCL), to build, own and operate biomass power plants primarily in Northern and Western Europe and North America.
The construction of the joint venture’s first 40 MW straw fired biomass plant, which was contracted in August 2013, (Brigg Renewable Energy Plant (Brigg)) has now been completed. The plant was handed over to the owners on 21 January 2016 after a construction period of less than 27 months, which is 3 months ahead of schedule and within the agreed investment budget of GBP 162m.
Brigg, which is located in Lincolnshire, East England, is based on Danish biomass energy technology supplied by BWSC under a turnkey EPC contract. Furthermore, BWSC is responsible for operation and maintenance of the plant under a 15-year O&M agreement, which commenced on the date of completion of the plant.
Brigg is owned by the CIP fund, Copenhagen Infrastructure I K/S which has PensionDanmark as the founding and sole investor, together with BWSC.
”We are very pleased with the good cooperation with CIP and BWSC. With the joint venture, we have found a model that provides PensionDanmark an attractive return with limited risks – risks that are now even further reduced following the successful completion of the plant. At the same time, we are helping to increase Danish energy technology exports. We therefore see strong potential in these types of partnerships,” says Torben Möger Pedersen, CEO, PensionDanmark.
”The completion of the Brigg power plant is a major step for BWSC as it exemplifies the synergies from a close collaboration between financial and industrial players in the energy sector. In addition, it supports BWSC’s strategic objective of increased activities within financing of and investing in power plants to increase our competiveness. The collaboration with CIP and PensionDanmark has strengthened BWSC’s position as market leader within building, operating and owning decentralised biomass power plants, and we look forward to continuing this fruitful partnership”, says Anders Heine Jensen, CEO in BWSC.
“The completion of Brigg is an important milestone for CIP and PensionDanmark, and for our cooperation with BWSC. We have been very pleased with the excellent partnership with BWSC, both as a co-investor and EPC contractor, and look forward to the continued cooperation. The successful completion also demonstrates the value of forming partnerships between financial investors and strong industrial companies”, says Christina G. Sørensen, Senior Partner in CIP.
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Facts about the project:
Brigg Renewable Energy Plant (Brigg) will be primarily straw fueled and has a capacity of 40 MW, corresponding to the total consumption of ~70,000 households, and an estimated annual CO2 emissions reduction of ~300,000 tonnes. The plant consumes ~250,000 tonnes of straw per year which is sourced from farmers in the local community. The boiler of the plant has been supplied by the Danish high-tech company BWE.