iCON Infrastructure, the London-based fund manager, is leading a consortium which has signed long-term contracts with UK utilities Thames Water and National Grid to provide heat and power from a new 19-megawatt (MW) environmentally friendly facility in Beckton, East London.
iCON’s second infrastructure fund, iCON II, owns 77.5 percent of the facility, which will be integrated with National Grid’s gas pressure reduction station and is in close proximity to Thames Water’s desalination plant and sewage treatment works.
Also part of the consortium are EEA Holdings, a manager of clean energy and renewable assets, and 20C, a renewable energy company specialising in generating renewable power and heat around gas pressure reduction stations.
The £70 million (€82 million; $107 million) facility is expected to commence full operations in the first quarter of 2015 following several years of development by 20C and National Grid.
Paul Malan, senior partner of iCON, said in a statement that the Beckton facility is “at the heart of London’s infrastructure and benefits from the long-term support of customers of the highest calibre”.
A spinout from Deutsche Bank, the iCON team has invested more than €2.5 billion in infrastructure assets 2004. The firm’s focus is on core infrastructure assets across Europe and North America.
In early February, iCON – together with Canadian pension funds PSPIB and AIMCo – sold UK utility Sutton and East Surrey Water to Japanese trading company Sumitomo Corporation in a deal which had an enterprise value of £306.5 million.