- 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 8,400 tonnes of CO2e every year
- The project will create 60 construction jobs and 15 full-time positions in operations
UK Green Investment Bank plc (GIB) and Equitix have today announced a commitment to fund the construction of a £30m energy facility in Widmerpool, Nottingham.
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 Widmerpool and was developed by Mycock Associates Ltd with support from Pinnacle Power ltd. It will generate up to 6.5 MW of green electricity and will be built as Combined Heat and Power (CHP) ‘ready’ with the potential to supply heat to a co-located wood drying facility.
It is expected to cut greenhouse gas emissions by approximately 8,400 tonnes of CO2e per year, the equivalent of taking 3,750 cars off the road for the life of the project.
A joint venture between STC Power S.R.L and Pensotti Fabrica Caldaie Legano S.P.A will act as the EPC Principal Contractor. The scheme’s biomass boiler and flue gas cleaning systems are being supplied by biomass specialists Pensotti Fabrica Caldaie Legano S.P.A which will also 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 15 full-time positions once operational.
Ed Northam, Head of Investment Banking, UK Green Investment Bank, said:
This plant represents another important step in advancing the country’s transition to a low-carbon economy. Supplying the local grid with renewable electricity, the plant has the capability to produce heat as well as power, making available affordable, low-carbon energy supplies for local businesses while also providing employment opportunities within the community.
Geoff Jackson, Chief Executive Director, Equitix, said:
Equitix have a robust pipeline of CHP opportunities in the UK and we are pleased to have closed another of these deals on behalf of our investors. We work with a diverse range of partners to support innovative deals across the country that will ultimately deliver remarkable carbon savings over the projects’ life. As investors we aim to make a difference and believe that delivering returns to shareholders can be fully aligned with a commitment to sustainable investments.
Peter Mycock of Mycock Associates Limited, principal developer and local Chartered Accountants said:
The support of Nottinghamshire County Council has enabled us to redirect waste from local landfill and to generate sufficient green electricity to power up to 20,000 homes within the local community.
Ross Nisbet, UK Green Investment Bank: firstname.lastname@example.org / 0330 123 2153
Adam Hinds, Equitix: AHinds@equitix.co.uk / 0207 324 8454
About the project
Total GIB share of investment (via Equitix-managed ESI fund): £14.6m
Total capital mobilised: £30m
Co-investors: Equitix Energy Efficiency Fund (EEEF)
Expected completion: March 2017
Developer: Mycock Associates Ltd / Pinnacle Power
EPC contractor: STC Power / Pensotti
Technology provider: Pensotti
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.