Irish power utility ESB and UK Green Investment Bank (GIB) will be contributing £35m each for development of a biomass fueled power project at Port of Tilbury in Essex, UK.
The joint investment by the parties will be done in combination of equity and shareholder loans.
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The £190m renewable energy project will also include £2m investment from technology provider Aalborg Energie Technik.
Senior debt funding for the power development has been provided by Eksport Kredit Fonden (EKF), Investec and Rabobank.
The power generation facility will use waste wood as fuel, and is likely to be commissioned in early 2017.
Once operational, the project is likely to supply 300GWh of electricity annually, which will met the energy requirements of 70,000 homes in the country.
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By GlobalDataStobart Biomass will provide 270,000 tonnes of fuel for the facility per year.
Burmeister & Wain Scandinavian Contractor (BWSC) will operate and maintain the facility after its commissioning.
UK Green Investment Bank chief executive Shaun Kinsbury said: "The Tilbury project is well placed to capitalise on the UK’s largest regional waste wood market, generating green electricity and creating local employment from London’s waste resources.
"The project is also important for marking the first investment of the Irish electricity utility ESB in UK waste and biomass infrastructure."
ESB chief executive Pat O’Doherty said: "ESB’s investment in Tilbury Green Power demonstrates the company’s continuing commitment renewable electricity generation and further reducing the carbon mix in our portfolio. It complements ESB’s existing UK investments in wind and gas-fired generation.
"As the British and Irish energy markets move closer together, investments like Tilbury will be increasingly important on both sides of the Irish Sea."
