£190m Fund raising for Spencer Group


BDO’s Mergers & Acquisitions team advised Spencer Group, a major Hull-based engineering company, to raise non-recourse project finance for the construction of its £190m Energy Works scheme in Hull. This 25 MW waste to energy plant will use Outotec’s gasification technology with a full EPC wrap being provided by the engineering and construction company M+W Group.                 

Energy Works is the first advanced gasification power plant to reach close under the Government’s Contracts for Difference (CfD) scheme and should be operational by January 2018. Alongside a grant of almost £20m from the European Regional Development Fund, three new equity partners have joined Spencer Group in funding this project: Bioenergy Infrastructure Group (BIG), Noy Fund and Hancock Natural Resource Group.

“We are delighted to have assembled an impressive group of partners to fund and deliver Energy Works which will be another step in confirming Hull as a centre for renewable energies. BDO’s excellent support has helped us steer a path through financing and structuring this project, providing support and advice when we needed it.”  

Charlie Spencer, OBE, Executive Chairman of Spencer Group