Brockwell Energy and Encyclis are pleased to announce the successful completion of a re-financing of Earls Gate Energy Centre (“EGEC”). The existing senior term debt package was refinanced with a new £281m senior facility with leading infrastructure banks. The Mandated Lead Arrangers include existing lenders MUFG, ABN and Investec, as well as Natixis which has joined the lending group.
EGEC, was developed through a partnership between Brockwell Energy and Encyclis, is a CHP enabled Energy-from-Waste facility, with processing capacity up to c 270ktpa located in Grangemouth, Scotland. The project plays an essential role in supporting the UK’s transition to sustainable waste management, while delivering reliable, sustainable heat and power into local industrial users.
The successful closing of the refinancing reflects the excellent work of Brockwell and Encyclis, supported by the plant’s operational team in completing the first phase of a significant optimisation programme to deliver an increase in maximum continuous rating (MCR). With proven reliability and increased throughput, the additional value generated has been further enhanced with the arrival of new heat and power off-takers via new tenants at Calachem’s Earls Gate complex.
MUFG acted as Financial Advisor, Mandated Lead Arranger, Hedge Provider, Facility Agent, Security Trustee and Account Bank
Paul Newman, CCO of Brockwell Energy Limited, the original project developer and 50% owner of EGEC, commented:
The successful refinancing vindicates the strong progress the team has made to deliver EGEC into steady state operations and subsequent delivery of further plant optimisation. The plant is a best in class, high quality infrastructure asset, with established heat and power offtake as well as further growth opportunities which makes it one of the most efficient EfW plants in the UK. The successful and reliable operation of the plant has now served to attract further heat and power offtakers to the Calachem site supporting further value creation in the future.
Mark Corben, CFO of Encyclis, 50% owner of EGEC, commented:
We are pleased with the successful refinancing process and the support of three of the original four lenders who financed the plant’s construction in December 2018. This reflects their continued confidence in the asset and its management team.
Adam Prater-Rushton at MUFG EMEA, said:
This refinancing deal underpins a strategically important environmental infrastructure project that supports the UK’s long-term decarbonisation objectives. It also reflects MUFG’s strong advisory and lending capabilities in the Energy-from-Waste sector, which requires long-term, stable financing structures.