RBS May Lend $631 Million for Clean Power, Focusing on Biomass
Royal Bank of Scotland Group Plc (RBS), Britain’s biggest government-owned lender, may channel as much as 400 million pounds ($631 million) into clean energy this year with a focus on biomass.
The bank is working on about five deals to support plants that will use organic matter such as wood chips to generate electricity, said Andrew Buglass, head of energy in RBS’s structured finance division. The facilities, to be built from scratch, will each have a capacity of 50 to 150 megawatts, he said. Projects of that size may cost as much as 300 million pounds and RBS expects other banks to invest as well.
Britain’s biomass industry has gained momentum following clarification of government support levels in July. The Department of Energy and Climate Change estimates bioenergy plants using wood chips and organic waste to produce heat and power may meet 8 percent to 11 percent of the nation’s primary energy demand in eight years. The bulk of the bank’s lending last year was on wind and solar power, Buglass said in an interview in London, as it laid the groundwork for the larger biomass projects it expects to fund this year.
“Biomass will occupy quite a lot of our time and effort this year,” Buglass said. “It can make a material contribution to the generation mix. Financing for the larger biomass projects is likely to be finalized towards the end of the year.”
http://www.bloomberg.com/news/2013-01-24/rbs-may-lend-631-million-to-clean-power-focusing-on-biomass.html
