UK Energy Efficiency Investments (UKEEI) 1, the fund managed by Sustainable Development Capital Limited (SDCL) in which UK Green Investment Bank plc (GIB) is a cornerstone investor, has committed £7m to a major energy efficiency project in the North East of England.
Additional capital has been committed by a parallel SDCL-managed fund, UK Energy Efficiency Investments (UKEEI) 1A.
New steam-raising boilers, compressor technology and other heat-recovery measures will be installed at Huntsman’s plant in Wilton, Redcar. The project is expected to provide the global chemical manufacturer with long-term cost certainty, energy security and resilience.
Upon completion, Huntsman expects to produce 100% of its on-site steam requirements, leading to an estimated reduction in greenhouse gas emissions by up to 28,000 tonnes per annum – the equivalent of removing 12,750 cars from the road for the life of the project.
SDCL expects the project to make the biggest impact of any investment made by the UKEEI fund to date in terms of greenhouse gas emissions reduced per pound of investment.
ENGIE has been appointed engineering, procurement and construction (EPC) contractor, as well as being awarded the operations and maintenance (O&M) contract for the project.
Construction work has commenced with the project scheduled for completion by summer 2017.
Edward Northam, Head of Investment Banking, GIB, said:
Many manufacturers continue to rely on low-efficiency boilers to service their energy needs. By investing in new technology, the country’s energy intensive industries can reduce energy wastage. Huntsman is an example to its peers; it has recognised that it can cut costs and help mitigate climate change by making its processes more energy efficient.
David Maxwell, Investment Director, SDCL, said:
SDCL is delighted to be working with a world-class team to deliver a major steam generation project to Huntsman. The turnkey solution, which will encompass all elements of the project from design and construction through to the long term operation and maintenance of the plant, will deliver significant cost savings, energy resilience and long-term price certainty to Huntsman. This project demonstrates that energy efficiency is one of the largest and most cost effective sources of greenhouse gas emission reductions.
Paul Rawson, UK Divisional CEO for Energy Solutions, ENGIE, said:
ENGIE are delighted to be working with Huntsman, SDCL and the Green Investment Bank on this innovative new plant. Through the delivery of the design, build and on-going operation and maintenance of the scheme, ENGIE will provide a resilient, cost effective solution which significantly reduces carbon emissions.
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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.
About UK Energy Efficiency Investments Fund
The UK Energy Efficiency Investments Fund is managed by SDCL EE Co (UK) LLP, the dedicated energy efficiency investment arm of SDCL. UK Green Investment Bank plc (GIB) is the cornerstone investor in the Fund, having committed £50m to the vehicle in September 2012. The Fund makes investments in efficiency projects across the UK.
Huntsman Corporation is a publicly traded global manufacturer and marketer of differentiated chemicals with 2015 revenues of more than $10 billion. Its chemical products number in the thousands and are sold worldwide to manufacturers serving a broad and diverse range of consumer and industrial end markets. It operated more than 100 manufacturing and R&D facilities in approximately 30 countries and employs approximately 15,000 associates within its 5 distinct business divisions.
ENGIE is a leading energy and services group employing 20,000 people in the UK across three main activities: services, energy solutions and energy infrastructure. ENGIE is using its capabilities to lead the UK’s transition towards a more secure and sustainable future, through a strategy based on investment in critical energy infrastructure, integration of its energy expertise with its broad services offer, and innovation in customer-led solutions and technologies.
The business has well-established and diverse operations that span power generation as one of the UK’s largest independent power producers; providing power and gas to thousands of UK businesses; and delivering services to more than 14,000 customer sites across the public and private sector.
Globally, ENGIE’s businesses are developed around a model based on responsible growth to take on the major challenges of energy’s transition to a low-carbon economy. The Group employs 154,950 people worldwide and achieved revenues of €69.9 billion in 2015.