GIB backs Scottish waste plant alongside three banks

The UK Green Investment Bank was joined by Investec, Siemens Bank and Crédit Agricole in providing debt for the £142m project.

A 14MW energy-from-waste project in Scotland has reached a £142 million ($176.5 million; €158.6 million) financial close after securing debt financing from a consortium of banks.

The Green Investment Bank said it provided £28 million towards the project, while funds were also committed by Investec, Siemens Bank and Crédit Agricole.

Equity was provided by developer FCC Environmental, which has been appointed to operate the plant by Zero Waste: Edinburgh and Midlothian, a joint venture between City of Edinburgh Council and Midlothian Council. It is scheduled to be completed in 2019.

“We are supportive of steps taken in Scotland to drastically reduce the amount of waste sent to landfill,” Edward Northam, head of investment banking at GIB, said in a statement. “It’s important that materials are re-used and recycled wherever possible, but it’s equally important that infrastructure is developed to increase the amounts of energy recovered from waste that can’t be reprocessed. The Millerhill plant will aid that process greatly and help ensure landfilling in Scotland continue to fall.”

GIB provided £93 million to two separate energy-from-waste projects in July and August. It is currently in the midst of a privatisation process, with bids submitted by three consortia including those led by Sustainable Development Capital and Macquarie.