Macquarie Capital appointed to advise on the financing of 1.8GW Trafford power plant

27th August 2014

logos-TK-news-carlton-v1Stokesley, North Yorkshire: Carlton Power has appointed Macquarie Capital its exclusive financial adviser on raising debt and equity for its 1.8GW Trafford Power combined
cycle gas turbine (CCGT) power station project in Greater Manchester.

Carlton Power will enter Trafford Power into the UK Government’s Capacity Market Auction that is to be held in December 2014. The Capacity Market will offer payment support for 15 years to new build power stations in return for guarantees to provide capacity at times of stress on the electricity system.

Subject to the outcomes of the auction and Carlton Power’s financing process, construction on the Trafford Power station is expected to start mid-2015 with operations commencing towards the end of 2018. The project will utilise the latest CCGT technology with greater efficiency and flexibility than the UK’s current fleet of gas-fired power stations.

Macquarie Capital has been appointed to raise capital for the project and will be approaching potential equity investors and debt providers to commence discussions leading up to DECC’s Capacity Market Auction in December. Macquarie Capital is a leading infrastructure advisor globally, having advised on over £100 billion worth of infrastructure transactions in the last five years.

Carlton Power’s selection of Macquarie Capital is the latest appointment to the Trafford project, and follows the recent appointment of Marsh Limited as insurance advisers. Carlton Power will announce the selection of its EPC contractor in the next few weeks.

Keith Clarke, Managing Director of Carlton Power, said: “We are delighted to have appointed such highly regarded financial advisers to assist with our Trafford project. Macquarie brings a wealth of experience of raising capital in the power and wider infrastructure industries. Their appointment comes at an exciting time for us as our Trafford project is now well advanced and on course for participation in the Capacity Market Auction at the end of this year and commercial operation in 2018. We are ready to begin active discussions with potential debt and equity investors.”

Mark Dooley, Head of Development Capital, Macquarie Capital said: “We are very pleased to have been appointed by Carlton Power to advise on the capital raise for Trafford Power station. The upcoming Capacity Market Auction is an important milestone for the UK energy sector and we believe that Carlton is extremely well positioned given its proven track record.”

For additional information, please contact:

Carlton Power

Alan White, Project Finance Director: awhite@carltonpower.co.uk / 07710 774150

Paul Taylor, Taylor Keogh Communications: paul@taylorkeogh.com / 020 3170 8465

or Macquarie Capital

Nicole Grove, Macquarie Group: Nicole.grove@macquarie.com / 0203 037 5602

EDITORS NOTES:
About Carlton Power

  • Carlton Power is the UK’s most successful independent power station developer. Based in Stokesley, North Yorkshire, it has managed projects in the UK and Europe since it was founded in 1995. Projects include Enfield, Langage and Carrington.
  • To date, Carlton has been involved in more than 4500MW of power projects of which over 2300MW is operating or under construction in the UK.
  • Carlton developed the Carrington Power Station in Manchester, the only new independent CCGT power station to start construction in the UK since 2008 and was instrumental in securing financing for the project which is now wholly owned by ESBI and under construction by Alstom/Dura Fuguera.
  • The Trafford Power project is to be constructed on land next to Carrington Power in Greater Manchester and was granted Section 36 Approval in April 2010 for a 1520MW facility.
  • In May 2014, Carlton wrote to DECC’s Secretary of State, Edward Davey, requesting approval to vary its existing consent on the Trafford Project, “to accommodate recent advances in gas turbine technology and developments in the expected operating regime for the UK electricity market.” Carlton’s wish to increase the total size of the Trafford Power project from 1520 MW to 2060 MW, of which the combined cycle gas turbine element will comprise 1800 MW.

About Macquarie

Macquarie Group (Macquarie) is a global provider of banking, financial, advisory, investment and funds management services. Founded in 1969, Macquarie operates in more than 65 office locations in 28 countries and employs more than 13,900 people. Assets under management total approximately £237 billion at 31 March, 2014.

About Macquarie Capital

Macquarie Capital comprises Macquarie Group’s corporate advisory, capital markets, underwriting and wholesale structuring capabilities. It provides a breadth of services including specialist capabilities in mergers and acquisitions, takeovers and corporate restructuring advice, equity and debt capital markets, corporate broking, private equity placements and principal products.

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