Spalding: Funding For Energy Project

22 October 2013, 11:11 | Updated: 22 October 2013, 11:27

A gas-fired power generation site at Spalding is among some 40 infrastructure projects, with a total capital value of £33 billion, that have passed the first hurdle to secure Government funding guarantees, the Treasury has announced.

Around half the total value is accounted for by the £16 billion Hinkley C nuclear power plant, unveiled on Monday, but Treasury Chief Secretary Danny Alexander released a list of 15 further projects which have ``prequalified'' for guarantees.

More than half of those which have prequalified status are energy projects, including plants to generate electricity from biomass, waste, unconventional gas, wind and wood. Others include rail and rail developments and a gas storage facility in Northern Ireland.

Government agreement to act as guarantor for a proportion of the capital value of a project is intended to encourage private investment by providing investors with confidence that they will get their money back if the scheme does not pay. The UK Guarantee scheme is authorised to issue up to £40 billion of guarantees.

Mr Alexander said: ``Getting our infrastructure right means we can be globally competitive, boost growth and create jobs across the UK. What we see today is the extent to which the Government is reaching out to help the private sector build Britain's key infrastructure.

``Having passed the first hurdle, these companies know the Government is there to help if they need it. I hope today's announcement will encourage even more businesses to consider how they can take advantage of a guarantee.''

The 15 ``prequalified'' projects are:

•  A £300 million 100 MW biomass energy generation facility by Helius Energy in Avonmouth, on the Bristol Channel;

•  The £400 million Islandmagee gas storage project, which will be capable of storing up two months' worth of Northern Ireland's total gas requirement;

•  Two Intergen gas-fired power generation projects at Spalding in Lincolnshire and Gateway Energy Centre in Essex;

• Countesswells mixed-use development of homes, business spaces and shops in Aberdeen;

• Neart Na Gaoithe 450MW windfarm in the outer Forth Estuary;

• Able Marine Energy Park port facility for offshore renewable energy technologies on Humberside;

• Chinook Energy plants, producing renewable energy from waste at sites around the UK;

• Gasrec producer of low-carbon fuel for UK commercial vehicle fleets;

• University of Roehampton campus redevelopment in south London;

• Tilbury Green Power 60 MW waste wood-fired power generation plant in Essex

• Relocation of Northampton University