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Wheelabrator Kemsley

Wheelabrator Kemsley Energy-from-Waste Facility Achieves Financial Close

Construction of the facility is set to begin in August.

Wheelabrator Technologies announced that it has reached financial close on a new 606,000 tons per year energy-from-waste facility at Kemsley in Kent, U.K.

“To achieve financial close is a significant milestone and I’m very proud of our team for making this possible, and excited to welcome a second facility in the U.K. to our fleet,” Wheelabrator President and CEO Robert Boucher said in a statement.

Wheelabrator Kemsley is a combined heat and power facility which will generate 43 MW of sustainable electricity to power U.K. homes and businesses. Due to the facility’s location, Wheelabrator Kemsley will also provide valuable steam heat to the adjacent Kemsley Paper Mill, owned and operated by DS Smith.

Progress to reach financial close on this $447 million project follows the award of an environmental permit by the Environment Agency in 2011 and planning permission by Kent County Council in March 2012.

In February 2015, Wheelabrator was successfully awarded a 15-year contract with the U.K. government for approximately 50 percent of the facility’s power output. Fuel for the Wheelabrator Kemsley facility will come from across Kent and South East England, with 75 percent of the fuel supply hedged at fixed prices for terms ranging from 5 to 15 years with a number of top tier waste management companies.

Wheelabrator said site preparation work is underway and full construction of the facility is set to start in August. Wheelabrator expects plant operations to begin in 2019. The construction phase is expected to create hundreds of additional jobs in the local area and over 40 new, full-time operational roles at the facility.

“We remain focused on continuing to develop our pipeline for growth in the U.K. and building long-lasting relationships, including the one we have with DS Smith,” Wheelabrator U.K. Managing Director Paul Green said in a statement. “We are committed to bringing our experience and industry expertise to Wheelabrator Kemsley to deliver the highest safety and operational performance.”

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