A Nottingham-based combined heat and power (CHP) plant has received a £14.6m investment from the Equitix-managed Energy Savings Investments fund, while an additional £15m of private capital has been mobilised from the Equitix Energy Efficiency Fund (EEEF).
The plant is to be built in the Widmerpool area of Nottingham and has been developed jointly by Pinnacle Power Limited and Mycock Associates. It will generate over 6.8 MW of green electricity and will be built as 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 13,300 tonnes of CO2e per year.
The scheme’s biomass boiler and flue gas cleaning systems are being supplied by the Italian company Pensotti Fabbrica Caldaie Legnano S.P.A. and, once operational (expected in March 2017), the project will sell electricity to GDF Suez UK under a long-term power off take agreement. Veolia Energy Services Ltd has been awarded the long-term operations and maintenance contract.
Geoff Jackson, Chief Executive Director, Equitix, who were advised by law firm Squire Patton Boggs’ Projects team, 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.”
Commenting on the deal, Robin Baillie said: “Closing this deal marks a significant milestone for our Projects team as it is our first instruction for ESI and EEEF. It is also likely be one of the last deals to close under the ROC regime so we are pleased to have achieved this completion on behalf of Equitix and the Green Investment Bank (an investor in Energy Savings Investments). We hope this is the first of many more deals we can deliver for them.”