UK GIB and Equitix invest in Combined Heat and Power plant

Subscribe to our newsletter and get the latest news and business opportunities in your inbox
UK GIB and Equitix invest in Combined Heat and Power plant

The UK Green Investment Bank (GIB) and Equitix have announced a £14.6 million (US$22.8 million) investment to fund the construction of UYE (UK)'s 6.5 MW combined heat and power project in Sheffield.

The Equitix-managed fund Energy Savings Investments (ESI), in which the GIB is a cornerstone investor, is investing £14.6 million (US$22.8 million) in the project. An addition £15 million (US$23.4 million) of private capital has been mobilized from the Equitix Energy Efficiency Fund (EEEF). The total project investment is estimated at £30 million (US$ 46.7 million).

To be built in the Holbrook area of the city of Sheffield and developed by UYE (UK), the project will have a generating capacity of over 6.5 MW and will be built as Combined Heat and Power (CHP) "ready" with the potential to supply heat to more than 6,700 local homes and commercial properties.

Kantor Energy, a specialist District Heating Design & Build Engineering firm, will act as the Engineering, Procurement, and Construction (EPC) principal contractor.

The site's biomass boiler and flue gas cleaning systems are being supplied by biomass specialist VAS Energy Systems International. Turboden will supply the clean electricity generation equipment.

Once operational, expected to be in March 2017, the project will sell electricity to GDF Suez UK under a long-term power purchase agreement (PPA).

Veolia Energy Services has been awarded the long-term operations and maintenance contract.

The GIB's Head of Investment Banking, Ed Northam, commented:

"We are very pleased to be able to help UYE realize its vision of a highly-efficient, smaller-scale, CHP ready plant. It is a project that typifies the role of the GIB in helping developers utilize innovative technology to create new sources of green power to cut carbon emissions and create important local benefits for communities."

Geoff Jackson, Equitix's Chief Executive Director, stated the following:

"Closing this deal marks a significant milestone for Equitix. It is the first community-scale biomass project in our energy efficiency portfolio and delivers beneficial carbon savings to the environment. We expect to see similar deals closing in the coming months and through these investments will continue to do what we set out to do: creating a more sustainable UK."

The GIB was launched in November 2012. 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.

IPP Journal recently reported on the UK Government's partial privatization of the UK Green Investment Bank.

List of country news

Country news

  • July 22, 2015

    NextEnergy Solar Fund closes financing for solar projects

    NextEnergy Solar Fund Limited (NESF) has closed a debt facility of £22.7 million with NIBC to finance the 20 MW Cock Hill and the 9.4 MW Llwyndu solar projects in UK. Read more
  • July 22, 2015

    Abengoa Yield increases its credit facility by $290 million

    Abengoa Yield has more than tripled its existing credit facility through an additional US$290 million of credit. Read more
  • July 24, 2015

    EDPR and Repsol exchange offshore wind projects in Scotland

    EDP Renováveis S.A. (EDPR) has reached agreements with Repsol Nuevas Energías S.A. to exchange offshore wind projects in Scotland. Read more
  • July 27, 2015

    SEP expands infrastructure team with two appointments

    Scottish Equity Partners (SEP) has expanded its infrastructure team with the appointment of Romain Keyen as Associate and Adam Delaney as Director of Finance. Read more
  • July 27, 2015

    Equitix Fund IV reaches first close

    Equitix has announced a first close of £278 million (US$431 million) for Equitix Fund IV, Equitix’s fourth core infrastructure fund achieving over 55% of the Fund’s £500 million (US$775 million) target. Read more

Share this news

Join us

In order to get full access to News section, you must have a full subscription. You can check all the benefits of becoming a member and purchase a subscription on our membership page.