Newhurst Energy from Waste | February 2020
Cornwall Insight provided Power Purchase Agreement (PPA) tender support to allow financial close to be achieved on the 42MW Newhurst Energy-from-Waste facility (EfW) in Leicestershire, England. The project is a joint venture between Covanta Holdings Corporate (a global provider of sustainable waste and energy solutions), Biffa plc (the sustainable waste management business) and Macquarie’s Green Investment Group (a specialist in green infrastructure principal investment). It will be a significant asset in the drive to decarbonise waste management in the UK.
The joint venture partners were required to obtain a suitable PPA to allow them to have sufficient financial certainty in relation to the project to allow them to make the relevant financial investment in the project. We provided a comprehensive end-to-end service over serval months to facilitate the tender and delivery of the PPA to support the investment process.
This service included the development of the PPA tender criteria in which the options available to the client were investigated, explained and agreed upon, and then conveyed to all the suppliers in the market who were likely to meet these requirements. The communications of the tender process were then managed, with Cornwall Insight answering queries associated with the tender process, including fielding queries from suppliers, providing guidance to the client and organising key administrative elements such as Non-Disclosure Agreements. The commercial and contracts aspects of the quotes PPAs were also determined, involving liaising with legal teams to assess terms of concern for the client and providing detailed analysis of the quoted prices. Finally, contract negotiation support was also provided, allowing for the successful completion of the tender process.