German bank KfW IPEX-Bank and Swedish bank Svenska Handelsbanken have provided credit to enable the construction of the MVV Devonport facility in Plymouth.
Loans worth €200 million (£157 million) have been provided by the banks to MVV Energie, which owns MVV Umvelt that is contracted by the South West Devon Waste Partnership (SWDWP) to undertake the planning, building and operation of the new facility for a period of 25-years.
The loan will help to procure the equipment for the facility. The boiler for the plant is being supplied by Baumgarte Boiler Systems in Germany, the flue gas cleaning equipment is provided by Stuttgarter LAB, Imtech is supplying the energy and building technology and SAR Electronic from Landshut is providing the industrial and process automation.
MVV Energie chairman Georg Mülller said: “With the new plant in Plymouth, we can profitably apply our years of experience and our internationally valued expertise in environmentally friendly waste recovery in the British market.”
Svenska Handelsbanken Mannheim branch head Jürgen Ding said: “We are pleased that we could contribute with our structuring know-how to this complex transaction and thereby help implement a successful project.”
The total investment costs amount to €250 million. The European Investment Bank (EIB) also plans to provide a long-term investment loan for the project.
The facility will have a nominal capacity of 265,000 tonnes and will provide heat and power primarily to the Devonport naval base.