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Nottingham green energy facility secures £30m investment

13 Oct 2015

– 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.”

About Equitix:

Equitix was established in 2007 and is based in London. Equitix is an integrated core infrastructure asset management and primary project platform and typically invests in UK infrastructure projects with long-term revenue streams across the healthcare, education, social housing, highways and street lighting, offshore transmissions and renewable and waste sectors. Tetragon (TFG) owns 85% of the business; over time, TFG’s holding is expected to decline to approximately 74.8%. Management own the balance. Equitix Investment Management Limited is authorised and regulated by the UK Financial Conduct Authority. 

This release does not constitute an offer to sell or the solicitation of an offer to buy any securities in any state or jurisdiction.