AFRY supports customer in successful acquisition of Biomass Combined Heat and Power Plant
AFRY UK engineering consultancy supplies buy side technical due diligence services to JLEN Foresight Group for acquisition of ROC accredited Cramlington Biomass CHP Plant
In early 2021, JLEN, a Foresight Group managed fund, were considering acquiring a 100% stake in the 26.7 MWe Cramlington Biomass CHP Plant. Cramlington was commissioned in 2018, having been built & operated by Estover Energy, and was being sold out of administration. AFRY supported Foresight Group by providing Technical Due Diligence (TDD) services in support of the plant acquisition.
AFRY were asked to deliver TDD services within a short time frame, focusing on any significant plant risks and providing technical critique of key optimization measures identified by the Vendor.
Our project specific TDD approach consisted of reviewing the Vendors technical due diligence report, high level scrutiny of the technical aspects of the project agreements, and review of technical inputs into the financial model assumptions.
Foresight Group completed the successful acquisition of the Cramlington CHP, providing the firm with their first investment into large scale biomass CHP. Richard Morse, Chairman of JLEN was quoted saying “the plant has a strong operational track record and we look forward to optimizing this asset for the future”.
Client: JLEN, a Foresight Group managed fund investing in a diversified portfolio of Environmental Infrastructure
Services: Technical Due Diligence Services including:
- technical review of vendor technical due diligence report
- high level scrutiny of technical aspects of project agreements
- and the technical inputs into the financial model.
Plant: Cramlington Biomass CHP Plant
Execution Period: 2021
Location: Cramlington, UK
Technology: A CHP plant with a water-cooled vibrating grate boiler
Fuel: Nominal throughput of 240,000 t/yr of virgin biomass and up to about 10% Industrial Emissions Directive exempt waste wood chips (IEDx)
Output: up to 26.7 MWe in electrical only mode and up to 12.1 MWth