Green Frog Power in £60m funding boost
Power station operator Green Frog Power (GFP) has secured a £60m project finance debt package from the Royal Bank of Scotland (RBS). The Birmingham-based company said the cash would fund the development of 14 new electricity plants in the UK.
The funding will allow GFP to develop, construct and operate the 14 diesel-powered ‘short-term operating reserve’ (STOR) electricity plants. It is the first time a STOR project will have been funded through non-recourse finance.
RBS is therefore only entitled to repayment from the profits of the specific project being funded by its loan, and not from other GFP assets.
GFP was awarded 15-year STOR contracts for 14 sites in the North East of England and South Wales in October last year.
Andrew Buglass, head of energy at RBS structured finance, said: "RBS is proud of its role as a key funder of projects in the STOR sector, which will be increasingly important for energy security across the British electricity grid. The transaction confirms RBS’s strong presence in the UK project finance market and reinforces our extensive credentials across all major technologies in the power sector."
GFP is developing the project alongside InfraRed Capital Partners.
