Financial close for Spalding Energy Expansion

Intergen has announced financial close and funding for Spalding Energy Expansion, a 300MW gas-fired plant in Spalding, Lincolnshire, which was awarded a 15-year capacity agreement in the  December 2016 Capacity Market auction.

The project has signed a contract with Siemens for an F-class gas turbine. Construction and balance of plant services will be provided by the Atlantic Projects Company UK and gas infrastructure by Darke Engineering. Construction is expected to be completed in June 2019.

“Spalding Energy Expansion will provide much needed peaking capacity to the grid for UK electricity consumers,” said Tim Menzie, InterGen chief executive.  The company said the project is the first and, to date, only large scale, thermal project to secure limited recourse financing based on the 15-year capacity agreement.

InterGen  appointed Santander and Nord LB for the limited recourse financing. Alejandro Ciruelos, head of project and acquisition finance infrastructure, Santander Corporate Banking UK, said, “We are extremely pleased to be supporting InterGen in the Spalding Energy Expansion Project from a financing perspective. This is a landmark transaction in the UK power market as it will provide our electricity system with additional flexibility to react promptly to sudden variations in consumer demand or unplanned outages in baseload power generation.”