UK export credit agency supports $14m CHP plant deal
April 9th, 2010
A Turkish aluminium recycler will take delivery of a combined heat and power plant provided by Nottingham-based Chinook Sciences after successfully seeking $14m of financing support from a UK finance firm and the UK's official export credit agency.
Chinook Sciences provides energy from waste systems among other technology for the metal and industrial gases industry. It will export a boiler and steam turbine system for DT Metal's recycling plant situated just outside Istanbul.
Sovereign Star Finance has provided a loan agreement for DT Metal, which has been insured against non-payment risk by the Export Credits Guarantee Department.
ECGD chief executive Patrick Crawford said: "This represents a significant success in ECGD's commitment to support smaller transactions under the SME programme set up with Sovereign Star Trade Finance in 2004. This project has excellent environmental characteristics, combining raw-material recycling with energy conservation and minimal emissions."
The seven-year, $14 million loan agreement will enable the purchase of the equipment from Chinook Sciences, which will recover heat from burning the gas generated by reprocessing aluminium cans at the recycling plant. Steam created from this will move the turbine to produce 3MWh of electricity.
Sovereign Star Finance - which provides medium-term buyer credits for small- to medium-sized transactions to overseas customers of UK exporters - pays the UK exporter, in this case Chinook Sciences, in cash on behalf of the overseas customer.
Sovereign Star executive director Chris Siegl said this was one of its biggest deals so far: "Sovereign Star is proud to have financed, with ECGD support, this important project for DT. It emphasizes its commitment to stimulating global demand for small to medium sized UK goods exports."
Article from - Materials Recyling Week - April 9th 2010