UK Green Investment Bank plc and Equitix commit £25m to Wrexham green energy plant
The facility will generate enough electricity annually to power 2,400 homes
The plant will reduce the equivalent amount of greenhouse gas emitted by 2,800 cars
Construction work will soon commence on a new green energy facility in Wrexham Industrial Estate, north Wales, after developers secured a commitment of £25m from UK Green Investment Bank plc (GIB) and Equitix.
The 5.4 MW biomass plant, the second to be developed by Liverpool-based Green Plan Energy, will generate around 34 GWh of green electricity per annum – enough to power 2,400 number of homes. It will be combined heat and power (CHP) ‘ready’, meaning it has the potential to provide heat to neighbouring manufacturing businesses.
The facility is expected to cut greenhouse gas emissions by approximately 6,000 tonnes CO2e every year – the equivalent of removing 2,800 cars from the road.
The Equitix-managed fund Energy Savings Investment (ESI), in which GIB is a cornerstone investor, is investing £12.25m in the project. An additional £12.75m of private capital has been mobilised from the parallel Equitix Energy Efficiency Fund (EEEF).
Bester Generaciόn UK Limited, part of the Bester Group, has been appointed engineering, procurement and construction (EPC) contractor and has been awarded a long-term operations and maintenance (O&M) contract. Around 60 jobs will be created during construction of the plant, with 15 full-time positions created upon completion.
Fuel will be supplied by Hadfield Wood Recyclers with biomass specialists PBS Energo supplying the plant’s biomass boiler, flue gas cleaning system and electricity generation contract.
Power will be exported to the grid and sold to ENGIE under a long-term power off-take agreement.
Edward Northam, Head of Investment Banking, GIB, said:
Britain’s manufacturing businesses consume huge amounts of heat every year, much of it from non-renewable sources. Dual-purpose plants like Wrexham, which are capable of generating renewable electricity and heat for the benefit of local industry, play an important role in greening the UK economy. Heat isn’t just a bi-product of the electricity generation process; it is a valuable source of energy in itself.
Geoff Jackson, Chief Executive Officer, Equitix, said:
We are pleased to have reached Financial Close on another CHP ‘ready’ scheme in our energy efficiency portfolio. Once operational, we expect it to deliver beneficial carbon savings and make a significant contribution to the environment and creating a sustainable economy in the UK.
Equitix is pleased to have achieved this close on behalf of our investors and we expect to close further energy efficiency deals in the coming months.
Ross Nisbet, UK Green Investment Bank: email@example.com / 03301 232 153
About the project
Total GIB share of investment: £12.25
Total investment: £12.75
Co-investor: Equitix Energy Efficiency Fund (EEEF)
Developer: BGE Wrexham Ltd
EPC contractor: Bester Generaciόn UK Ltd
Technology provider: PBS Energo
Fuel supplier: Hadfield Wood Recyclers
O&M contractor: Bester Generaciόn UK Ltd
Expected date of completion: March 2017
Notes to editors
About the UK Green Investment Bank
UK Green Investment Bank plc (GIB) was launched in November 2012. With initial 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.