Back to TFG Asset Management Press Releases

Baddesley new £61m energy recovery plant

09 Nov 2017

  • Equitix Energy Efficiency Funds commit £61m to Baddesley energy recovery plant
  • The facility is designed to generate enough electricity annually to power 7,500 homes
  • The plant is designed to reduce the equivalent amount of greenhouse gas emitted by 5,400 cars

Construction work will soon commence on a new green energy facility in Baddesley Colliery Shale Tip near Baxterley, Warwickshire, with £61m being invested by Equitix through its Energy Efficiency Funds.

The c. 8 MW energy recovery plant, which was developed by Aeternis (Baddesley) Limited, a Joint Venture between Aeternis Energy Limited and Park Top Limited, will generate up to 68 GWh of green electricity per annum – enough to power 7,500 number of homes. The facility is expected to cut greenhouse gas emissions by approximately 12,000 tonnes CO2e every year – the equivalent of removing 5,400 cars from the road.

The Equitix-managed Energy Savings Investment fund (ESI), is investing £23.2m in the project. This fund was established by the UK Green Investment Bank before its recent sale to Macquarie. An additional £37.8m of private capital has been mobilised from the parallel Equitix Energy Efficiency Fund (EEEF).

Kantor Energy Limited, part of the Dornan Group, has been appointed as the 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. Boiler specialists Vyncke will supply the plant’s boiler and flue gas cleaning system.

The fuel will be made up of waste wood, refuse derived fuel (RDF) and commercial and industrial waste with a high biogenic content. It will be supplied by Mick George Limited who have facilities at Mountsorell in Leicestershire, Great Billing in Northampton and Rushton in Northamptonshire.

Power will be exported to the grid and sold to Total under a long-term power off-take agreement.

Geoff Jackson, Chief Executive Officer, Equitix, said: “Equitix continues to invest in the heart of local communities and in line with its funds’ investment criteria. We are pleased to be building on our portfolio of energy efficiency and renewables projects, which will deliver sustainable solutions to the community. We are proud to be part of this partnership to deliver beneficial carbon savings and make a significant contribution to the Warwickshire environment.” “The existing student residences at Freemen’s Common are coming to the end of their life, which presented an ideal opportunity for us to look at this area as a whole and how it could be redeveloped to provide a better range of accommodation. This project is a key part of our wider programme to transform our estate to provide the high-quality facilities needed to support the continued delivery of world-class academic activity and an excellent student experience.”

Ben Leech, Project Director for Equitix, said: “We are delighted to be partnering with Kier Construction on the regeneration of the University of Leicester’s Freemen’s Common site. Equitix is a committed long-term investor in UK core infrastructure and, by supporting this project, we will be a key stakeholder in the transformation of the campus for many years, helping to enable the next generations of students to learn in a modern and first class environment. As our sixth student accommodation transaction and fifth University PPP partnership, we are delighted to be able to continue to work in support of the Higher Education sector in the UK.”

Pre-application consultation on the scheme will commence next month, with a planning submission expected before the end of the year. Subject to planning, construction would start in early summer 2018.