The UK Green Investment Bank (GIB) and its fund manager Sustainable Development Capital LLP (SDCL) have announced a new investment to finance the installation of biomass heating at Moy Park, a UK food business and provider of locally farmed poultry.
GIB has committed to invest in 60 biomass energy centres at Moy Park farms which will generate over 90% of the farms’ heating needs. These will provide sustainable heating into poultry sheds replacing the existing fossil-fuel burning LPG heaters.
In addition to reducing costs, the new energy centres will have a significant green impact, saving up to 3,500 tonnes of greenhouse gas emissions each year, equivalent to taking 1,600 cars off the road for the life of the project.
GIB’s investment is being made by the SDCL-managed fund, UK Energy Efficiency Investments, in which GIB is the cornerstone investor. GIB invested £50m into the fund in 2012, to provide finance for small-scale energy efficiency projects.
Bill Rogers, UK Green Investment Bank, said:
We are pleased to back another energy efficiency project in the agricultural sector, helping to reduce business costs and cut carbon emissions.
This project is a good example of how we are working together with industry to provide innovative financial solutions for green projects of all sizes.
Alan Gibson, Moy Park UK and Ireland Director said:
As a renewable energy source, biomass not only ensures our farms are more sustainable, but also delivers additional welfare benefits for the birds, through enhanced environmental conditions on farm. Biomass also improves fuel efficiency which contributes to overall sustainability.
Jonathan Maxwell, Jim Totty and Chris Garside of SDCL EE Co (UK) LLP said:
Moy Park is a long term strategic partner for our fund and we are delighted to make this investment into biomass energy centres at their farms. Sustainable distributed heating is a core focus for our fund as it displaces fossil fuel heating and reduces carbon emissions. We have excellent partners in Cofely and Land Energy, and we expect this to be followed by further energy centre contracts.
Paul Rawson, Managing Director, Cofely UK - Energy Services said:
Cofely is at the forefront of delivering sustainable energy solutions to UK clients. This landmark project shows how implementing sustainable solutions into supply chains also drives financial bottom line impact. We look forward to further projects partnering with SDCL.
John Westmacott of Land Energy said:
Land Energy are delighted to be working with Moy Park
and our partners to deliver this landmark "green heat" investment. It demonstrates that wood pellet biomass energy is becoming a mainstream choice for blue chip organisations. Land Energy's ESCO project capability coupled with one of the UK's largest wood pellet production plants ensures we can set up and service this type of contract reliably and efficiently over the long term.
About the project
Location: The farms are located in Billinghay and Sleaford in Lincolnshire.
Environmental benefits: The project will save around 3,500 tonnes of CO2e emissions each year, equivalent to taking 1,600 cars off the road for the life of the project.
Project details: The investment will finance the installation of 60 199 kW biomass boilers at Moy Park poultry farms.
Developer: Land Energy and Cofely. Construction will be led by Cofely who will maintain and operate the energy centres with work beginning at the end of October 2014, and to complete by March 2015.
Jobs: 12 temporary construction roles and 1.8 FTE permanent roles.
Feedstock: Sustainably sourced wood pellets from a pellet plant in Girvan, Scotland (wood sourced locally).
Notes to editors
About UK Green Investment Bank (GIB)
The UK Green Investment Bank was launched in November 2012. It has £3.8 billion of funding from the UK government. It is the first bank of its kind in the world. It is a ‘for profit’ bank, whose mission is to accelerate the UK’s transition to a greener economy, and to create an enduring institution, operating independently of government.
About the UK Energy Efficiency Investments Fund
The UK Energy Efficiency Investments Fund is UK Energy Efficiency Investments 1, LP and parallel partnerships co-investing alongside it. It has been launched with a £50m cornerstone investment from the UK Green Investment Bank and is managed by SDCL EE Co (UK) LLP, the dedicated UK energy efficiency investment arm of Sustainable Development Capital.
About Sustainable Development Capital (SDCL)
SDCL is a specialist financial and investment advisory firm, headquartered in London and with offices in New York and Hong Kong. It was established in 2007 to help governments, financial institutions and companies finance and invest in environmental and social infrastructure assets and services. SDCL’s advisory business is focused on facilitating the supply of clean infrastructure. Its investment business is focused on reducing demand for resources through energy efficiency.
About Moy Park
Moy Park is a top 10 UK food business and leading provider of fresh, locally farmed poultry and complementary convenience food products and brands to the UK, Ireland and Europe. The company employs over 12,000 people across production sites in Northern Ireland, Ireland, England, France and Holland. Moy Park is owned by Marfrig Global Foods.
Cofely, a GDF SUEZ company is Europe's leader in energy and environmental efficiency services. We develop innovative solutions that improve the efficiency of cities, buildings, industry and infrastructure. As a leading service business across public, private and healthcare sectors, we guarantee transformational outcomes - from reducing cost & environmental impact and maximising operational resilience, to improving the quality & efficiency of business processes.
Cofely in the United Kingdom and Republic of Ireland (UK & ROI) has a turnover of £1 billion, and employs over 15,000 people. By utilising low carbon technologies such as biomass and CHP along with energy efficiency initiatives, we have provided savings for UK customers of 150,000 tonnes of CO2 per annum.
About Land Energy
Land Energy is a renewable energy business focussed on manufacturing premium quality wood pellets that are certified to the ENPlusA1 standard. Land Energy’s production plant is in Girvan, Scotland and sources virgin feedstock from UK sustainably managed forests. Combined with long term feedstock contracts, this ensures a constant and reliable source of biomass fuel for ESCO customers.