- UK Green Investment Bank plc (GIB) and Equitix announce £14.6m investment in £30m new green energy plant
- Once operational, the plant will generate 6.5 MW of renewable electricity and save approximately 12,700 tonnes of CO2e every year
UK Green Investment Bank plc (GIB) and Equitix have today announced a commitment to fund the construction of a £30m energy facility in Sheffield.
The Equitix managed fund Energy Savings Investments (ESI), in which GIB is a cornerstone investor, is investing £14.6m in the project. An additional £15m of private capital has been mobilised from the Equitix Energy Efficiency Fund (EEEF).
The plant is to be built in the Holbrook area of the city and was developed by UYE (UK) ltd. It will generate over 6.5 MW of green electricity and will be built as Combined Heat and Power (CHP) ‘ready’ with the potential to supply heat to more than 6,700 local homes and commercial properties.
It is expected to cut greenhouse gas emissions by approximately 12,700 tonnes of CO2e per year, the equivalent of taking 5,700 cars off the road for the life of the project.
Kantor Energy Ltd, a specialist District Heating Design & Build Engineering firm will act as the EPC Principal Contractor. The scheme’s biomass boiler and flue gas cleaning systems are being supplied by biomass specialists VAS Energy Systems International GmbH. Turboden Srl will supply the clean electricity generation equipment.
Once operational the project will sell electricity to GDF Suez UK under a long-term power off take agreement and Veolia Energy Services Ltd has been awarded the long-term operations and maintenance contract.
The development is expected to create 60 jobs during construction and a further 15full-time positions once operational.
Ed Northam, Head of Investment Banking, UK Green Investment Bank, said: :
We are very pleased to be able to help UYE realise its vision of a highly-efficient, smaller-scale, CHP ready plant. It is a project that typifies the role of the GIB in helping developers to utilise innovative technology to create new sources of green power to cut carbon emissions and create important local benefits for communities.
Geoff Jackson, Chief Executive Director, Equitix, said::
Closing this deal marks a significant milestone for Equitix; it is the first community-scale biomass project in our energy efficiency portfolio and delivers beneficial carbon savings to the environment. We expect to see similar deals closing in the coming months and through these investments will continue to do what we set out to do: creating a more sustainable UK. Equitix is pleased to have achieved this close on behalf of our investors.
Stephen Brooks, Director, UYE (UK) Limited, said: :
It has taken us over five years and almost half a million pounds to get this project designed, consented and funded and we are absolutely delighted that the UK Green Investment Bank and Equitix have had the courage and commitment to work with a local, small private company and fund this community-scale CHP ready project.
We see that these local, community-scale energy generation projects are one of the ways to reduce carbon emissions, reduce grid losses and generate useable, sustainable and affordable heat for local communities. This project is the first in our proposed portfolio of similar developments.
Many people told us that we would never be able to compete with the large energy generation companies, but thanks to the help, support and innovative thinking of the GIB and Equitix we have been able to fund this project and bring it through to construction.
About the project
Total GIB share of investment: £14.6m
Total capital mobilised: £30m
Co-investors: Equitix Energy Efficiency Fund (EEEF)
Expected completion: March 2017
Developer: UYE (UK) Ltd
EPC contractor: Kantor Energy
Technology providers: VAS Energy Systems International GmbH and Turboden Srl
O&M operator: Veolia Energy Services Ltd
Notes to Editors
About the UK Green Investment Bank
UK Green Investment Bank plc (GIB) was launched in November 2012. With £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.
GIB is wholly owned by HM Government. The Company is not authorised or regulated by the Financial Conduct Authority or the Prudential Regulation Authority. A wholly owned subsidiary UK Green Investment Bank Financial Services Limited, is authorised and regulated by the Financial Conduct Authority.
Equitix is a company established to deliver and manage infrastructure projects from bidding and closing through to construction and service provision. Its reputation is built upon strong relationships with its clients and partners, as well as a committed approach to every project in which they are involved and investment they make.
About UYE (UK) Limited
UYE (UK) Ltd is a private energy development company that was established to develop, own and operate low carbon, sustainable energy generation and heat networks.
The three directors of UYE are all specialists in sustainable fuel development, Combined Heat and Power (CHP) heat networks, land use and planning/consenting matters.