A&O advises Macquarie Asset Management’s Green Investment Group and Fortum partner on the South Clyde Energy-from-Waste plant financing
19 August 2022
Allen & Overy has advised the Green Investment Group (GIG) on its 50/50 partnership with Fortum to develop and project finance the c.45MWe gross South Clyde Energy-from-Waste plant in Glasgow, Scotland.
GIG is a specialist green investor within Macquarie Asset Management and a global leader in the development of companies, assets and technologies that aim to accelerate the global transition to net zero. Fortum is securing a fast and reliable transition to a carbon-neutral economy by providing customers and societies with clean energy and sustainable solutions.
In a first for the sector, limited recourse project financing is being provided by a leading sovereign wealth fund. When fully operational, the energy-from-waste plant is expected to treat up to 350,000 tonnes of residual, non-recyclable waste every year. The energy-from-waste plant will reduce greenhouse gas emissions by 67 kt CO2e per annum through the diversion of waste from landfill and has the potential to be retrofitted with carbon capture and storage technology in the future, supporting Scotland’s green transition goals.
Partner, Andrew Castle commented: "We are proud to have advised our longstanding client the Green Investment Group on the development and financing of the South Clyde Energy-from-Waste plant. In arranging the financing of the transaction, GIG and Fortum leveraged their sector expertise and global networks to employ a number of innovative structuring techniques not seen before in the UK waste to energy market. We were delighted to be able to apply our market leading expertise in energy from waste and project development and financing to support them in this endeavour and, ultimately, to support green transition in Scotland."
The A&O team was led by London partners Andrew Castle and Sara Pickersgill and included senior associates Chinedu Ihenetu-Geoffrey, Marton Eorsi, Raman Kamboh, Tom Lindley and Tom Betts, and associate Athena Chuang.