Caterpillar to help finance $10.4m cooking oil power plant

The financial arm of Caterpillar is to back a plan to construct an 18 MW power plant in Yorkshire, England which will be fuelled by waste cooking oil.

Renewable Energy Generation Ltd., a developer of low-carbon assets backed by BlackRock Inc., plans to build the facility with Finning UK and it is expected to cost in the region of $10.4m to complete.

Finning will design, build and maintain the project that will use fuel from recycled waste cooking oil to generate electricity.

REG will provide an initial 15 per cent of the funding. Once the unit is working in the second half of this year, Caterpillar (NYSE: CAT) will provide 70 per cent of the project costs through a long-term debt facility. The balance will be provided by REG, a statement said.

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