Case studies

Deloitte advises on the financing of enfinium’s (formerly Wheelabrator U.K. and Multifuel Energy Limited) latest greenfield EfW plant

Skelton Grange

Deal summary

Deloitte’s Debt & Capital Advisory’s Real Assets team has advised FSI-backed enfinium on raising finance for the construction of the Skelton Grange Energy from Waste (EfW) plant.

Skelton Grange is enfinium’s fifth EfW plant in the United Kingdom. Located near Leeds, the Skelton Grange facility will generate 49MW (gross) by processing up to 410,000 tonnes of waste per year. The plant will make a material contribution to enfinium’s goal of increasing their power generation capacity from 247MWh (gross) to 380MWh (gross) by 2026.

Deloitte provided financial advisory services to the project company (“ProjectCo”), with funds advised by First Sentier Investors (“FSI”).

The Skelton Grange debt is a highly structured, limited-recourse, project finance loan. The deal structure is precedent setting for the waste sector given the stretching of leverage above and beyond market norms and thereby delivering significant value to the client.

The project will be financed by CACIB, MUFG, Natixis and Santander.

The Deloitte Debt & Capital Advisory team was led by Priya Veerapen and Phil Adam with support from Catherine Wu, John Pardoe, Tim Mercorio and Mukul Patil. The DCA team was supported by the Business Modelling Group through Danny Heron and Anara Salykhova.

Why Deloitte?

Deloitte was awarded the mandate post completion of a highly competitive process comprising 8 other advisors from the “big 4” and the investment banks.

Critical to our success was the ability to demonstrate in-depth knowledge of the debt market and development of innovative financing solutions.

This is a highly valuable deal credential as it will be one of the largest energy transition deals in the U.K. in 2021.

The enfinium CFO, Mark Corben, said "We are very pleased to have achieved financial close on Skelton Grange. With the introduction of FSI as our owner, this project presented the opportunity for us to take a different approach to project financing for a U.K. EfW facility. The Deloitte team provided high-quality execution to deliver an innovative structure that met our objectives and importantly those of our relationship banks".

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