Shanks PFI waste project latest to benefit from GIB funds
Shanks is the latest beneficiary of UK Green Investment Bank (GIB) funding, receiving funding to help deliver its newly-secured PFI waste treatment contract with Wakefield Council.
The GIB has confirmed it will provide finance for the construction and operation of a mechanical biological treatment (MBT) facility which underpins the £750m 25-year contract.
GIB will provide up to £30.4m of senior debt to the project on commercial terms alongside a banking syndicate of leading international banks: BayernLB; Sumitomo Mitsui Banking Corporation; and Barclays Bank which together are providing a total of £121.7m.
Commenting on the financing, GIB chair Lord Smith of Kelvin said: "We are delighted to support Shanks in this project which is one of our first investments in this sector.
Each year the UK generates approximately 190 million tonnes of waste ... the UK Green Investment Bank is committed to reducing the amount of waste which goes to landfill, supporting the UK in its transition to a low carbon economy, whilst driving a commercial return for the bank."
Shanks' main site at South Kirkby, West Yorkshire will provide a selection of facilities to recycle, treat waste and generate sustainable power in the Wakefield District.
For processing residual waste, a facility combining mechanical treatment, autoclave and anaerobic digestion technology will be constructed to process around 200,000 tonnes per annum of materials, helping to increase the local authority's recycling rate to at least 52%.