REACT Energy gains funding for phase 2 of Newry project
U.K.-based REACT Energy plc, a company formerly known as Kedco plc, has announced approval from Ulster Bank Ireland Ltd. for the funding of the second phase of its joint venture biomass gasification project located in Newry, Northern Ireland. Phase one of the project began operation in September 2013. The plant is under development as a 50/50 joint venture between React Energy and Farmer Business Developments plc.
According to REACT Energy, it has invested significant time and resources over the past year testing and optimizing the performance of the first phase of the project, which features 2 megawatts (MW) of capacity. The second phase of the project calls for an expansion to 4 MW.
Regarding the approval from Ulster Bank Ireland, REACT Energy noted that the drawdown of funds can begin one certain conditions are satisfied. This includes the finalization and signing of contracts, and, if necessary, the investment of additional equity funding in the joint venture company.
In its announcement, REACT Energy indicated it will begin discussions with various parties with the goal to complete the installation contracts for phase two as soon as possible. An operational plan for phase one is also being put into place to facilitate the installation of phase two.
Gasification technology for the project was provided by Zeropoint and GE Jenbacher engines are being installed by Clarke Energy. According to REACT Energy, electricity generated by phase one of the project is being sold to Bord Gais Eireann, an Irish energy provider.
The company announced the name change from Kedco in on Dec. 20, indicating that the new name gave the company a clearer identity and better reflected its strategic shift towards the core business of renewable energy and clean technology (REACT)
REACT Energy also recently issued an update of its 12 MW combined-heat-and-power (CHP) project in North London. The company said the Enfield Biomass project now has full planning and environmental permission and that progress is being made to reach financial close and begin construction.