Herbert Smith Freehills has advised the lenders in connection with the project financing of Cory's second "energy from waste" (EfW) facility, which will be located next to Cory’s existing EfW facility in South East London and will play a vital role in addressing the current shortfall in waste processing capacity in London and the South East.
The new EfW facility, which is known as "Riverside 2" and will be one of the largest EfW facilities in the UK, will help achieve the goals of The London Plan, which among other things aim for 100% of London's waste to be processed within the capital's boundaries by 2026.
Upon completion of the new EfW facility, Cory will be able to divert approximately 650,000 tonnes of non-recyclable waste a year from landfill, converting it into low-carbon electricity capable of powering up to 140,000 homes. Combined with the existing EfW facility, this will enable Cory to process 1.4 million tonnes of waste a year and power 300,000 homes.
Helen Beatty, a partner in Herbert Smith Freehills' London finance practice, says: "We were delighted to support Cory and its lenders reach a successful financial close on the new Riverside 2 EfW plant in South East London. The support for and development of projects such as this are an important part of the waste management and decarbonisation solutions for London and the South East in terms of diverting waste from landfill and reducing greenhouse gasses while also generating low-carbon electricity."
The Herbert Smith Freehills deal team was led by London-based finance partner Helen Beatty, supported by of counsel Keith Gamble, associates Tom Papworth, Abraham Whitworth, Dammy Sokale and trainee Sophie McVea. Partner Nick May, associate James Telford and trainee Donati Llapashtica advised on the hedging aspects of the transaction and partner Isaac Zailer and senior associate James Tryfonos provided support on tax.
The Herbert Smith Freehills due diligence team was led by partner Sarah Pollock, supported by partners John Chetwood, Tim Healey, Catherine Howard and Julian Pollock, senior associates Ruth Benfield, Adam Hooton, Ben Hazenberg, Julie Vaughan and Becky Wee and associates Rebecca Butterworth, Owen Roberts and Meghan Vaillancourt.
Financial close was achieved on 9 December 2022. Construction is scheduled to begin in January 2023, with the new EfW facility due to be operational by 2026.