Slaughter and May advised VPI Holding Limited (VPI) on an approximately £67,800,000 construction term facility and £5,000,000 revolving facility for the development, construction and operation of two natural gas fired greenfield projects located at Immingham, North Lincolnshire, being (a) a 299MW Open Cycle Gas Turbine (OCGT) Power Station; and (b) a 50MW Gas Reciprocating Engine Power Station. Each new plant has already successfully bid for a 15-year capacity contract through the National Grid T-4 capacity auction and construction is underway, initially funded by VPI on its balance sheet.
Both power stations are intended to operate extremely flexibly, capable of rapid start up, and are therefore able to respond to shortfalls on the grid, usually at times of peak demand and/or when renewable energy generation is low.
Slaughter and May worked with VPI’s business and legal teams as well as Pinsent Masons LLP on matters of real estate.