Allen & Overy advised Green Investment Group on its partnership with Fortum

Allen & Overy advises Green Investment Group on its partnership with Fortum

In a first for the sector, the financing was provided by a leading sovereign wealth fund

Allen & Overy has advised the Green Investment Group (GIG) on its 50/50 partnership with Fortum to develop and project finance the c.45MWe gross South Clyde Energy-from-Waste plant in Glasgow, Scotland.

GIG is a specialist green investor within Macquarie Asset Management and a global leader in the development of companies, assets and technologies that aim to accelerate the global transition to net zero. Whereas Fortum is securing a fast and reliable transition to a carbon-neutral economy by providing customers and societies with clean energy and sustainable solutions.

Once fully operational, the energy-from-waste plant expects to treat up to 350,000 tonnes of residual, non-recyclable waste every year. It will reduce greenhouse gas emissions by 67 kt CO2e annually through the diversion of waste from landfill. It has the potential to be retrofitted with carbon capture and storage technology in the future, supporting Scotland's green transition goals.

Andrew Castle, the partner at Allen & Overy, said, "We are proud to advise GIG, our longstanding client, on the development and financing of the project. In arranging the financing of the transaction, GIG and Fortum leveraged their sector expertise and global networks to employ several innovative structuring techniques not seen before in the UK waste-to-energy market. We were delighted to apply our market-leading expertise to support them in this endeavor and, ultimately, to support green transition in Scotland."

The Allen & Overy team was led by London partners Andrew Castle and Sara Pickersgill. It included senior associates Chinedu Ihenetu-Geoffrey, Marton Eorsi, Raman Kamboh, Tom Lindley, Tom Betts, and associate Athena Chuang.

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