A Danish consortium has bought the UK’s latest biofuel plant in a £160million deal.
The 40MW straw-powered plant in Lincolnshire has been snapped up by a joint venture between PensionDanmark and Burmeister and Wain.
The plant, which will be powered by locally sourced straw, is set to produce enough energy to power 70,000 homes and is the second of its kind to be developed and financed by green project specialists Eco2.
“This project is a perfect example of sustainable biomass,” said Eco2 commercial director Darren Williams.
“By using locally sourced straw as feedstock, we’re using surplus residues to generate energy while contributing to the rural economy by providing long-term, stable supply contracts that catalyse straw production in the region.
“These contracts will bring £10million annually to regional farmers, supporting jobs in agriculture.”
Under the terms of the deal, Scandinavian contractors Burmeister and Wain will build the plant, which is due to be operational by 2016, for a £32million share, while PensionDanmark will meet the rest of the cost.
The partners will also be responsible for operating and maintaining the plant for 15 years.