The straw-fired power plant is owned by the BNP Paribas Clean Energy Fund and developed and managed by ECO2.
The facility will have an installed capacity of 40MW and will produce enough power to supply 65,000 households.
In addition, surplus heat from the plant will be utilized locally to heat the local swimming pool and Council offices, while ash produced will be recycled to provide fertilizer to support crop production.
Fuel for the plant will be sourced from residues from local farming, and is complementary to the production of existing crops.
Statkraft UK Renewable Energy Origination Einar Hoffart said the UK biomass industry has been put on hold during recent years; however, Statkraft has been able to bring flexibility and strength to develop and conclude a PPA with ECO2, contributing to the successful financial close of the Sleaford project.
BNP Paribas Clean Energy Partners CEO Joost Bergsma said this is the first project-financed deal in UK biomass for five years and will open the way for more projects to follow.
