Innogy's Triton Knoll wind project closes $2.6bn financing
German renewable energy giant innogy has closed financing for its Triton Knoll wind project, which is now ready for construction.
Financing for the project has totaled $2.6bn (£2bn), with innogy having arranged a consortium of 15 lenders to secure $2.25 (£1.75bn) of the funding. These include ING, BNP Paribas and Santander.
This follows Japanese utilities companies J-Power and Kansai Electric Power having bought stakes from innogy in the project, providing the additional finance.
Hans Bünting, COO of renewables at innogy, stated: “By reaching financial close, we have created the financial foundation for realising and operating the Triton Knoll offshore wind farm jointly with our new equity partners and international lenders.”
Julian Garnsey, project director of Triton Knoll, added: “This is a great moment for Triton Knoll and the UK offshore wind industry as we formally secure the means to deliver around $ (£2bn) of new UK energy infrastructure.
“Triton Knoll expects to deliver at least 50% of our investment with UK firms over the project’s lifecycle and at the height of construction we expect to see over 3,000 people working on the project.”
You can read more about innogy’s journey in the August issue of Energy Digital.
Drax advances biomass strategy with Pinnacle acquisition
The Group’s enlarged supply chain will have access to 4.9 million tonnes of operational capacity from 2022. Of this total, 2.9 million tonnes are available for Drax’s self-supply requirements in 2022, which will rise to 3.4 million tonnes in 2027.
The £424 million acquisition of the Canadian biomass pellet producer supports Drax' ambition to be carbon negative by 2030, using bioenergy with carbon capture and storage (BECCS) and will make a "significant contribution" in the UK cutting emissions by 78% by 2035 (click here).
This summer Drax will undertake maintenance on its CfD(2) biomass unit, including a high-pressure turbine upgrade to reduce maintenance costs and improve thermal efficiency, contributing to lower generation costs for Drax Power Station.
In March, Drax secured Capacity Market agreements for its hydro and pumped storage assets worth around £10 million for delivery October 2024-September 2025.
The limitations on BECCS are not technology but supply, with every gigatonne of CO2 stored per year requiring approximately 30-40 million hectares of BECCS feedstock, according to the Global CCS Institute. Nonetheless, BECCS should be seen as an essential complement to the required, wide-scale deployment of CCS to meet climate change targets, it concludes.