Scottish Equity Partners (SEP) announces an investment by its Environmental Capital Fund (ECF) of up to £9 million to establish a new heat project focused platform, Ardor Energy (Ardor).
Ardor will fund a pipeline of diversified, small–scale heat and combined heat and power (CHP) projects across the UK over the next two to three years.
Ardor will work with its partner, Sustinere Solutions Ltd (SustinereUK), a sustainable infrastructure & renewable energy development business to procure, install and maintain biomass and gas boilers and CHP projects across a wide range of properties including multi-occupancy housing, care facilities, leisure centres and hotels under long-term energy supply agreements. The SustinereUK team has significant sector experience having successfully delivered a number of biomass and other renewable projects from design and finance through to delivery and aftercare.
Peter Bachmann, Director at SEP said: "If the UK is to meet its requirements under the EU Renewables Energy Directive, DECC predicts that the country will need to increase significantly its renewable heat usage from 2% to 12%. There is a significant market opportunity in helping transition the UK to low carbon heating solutions. SEP’s investment in Ardor will facilitate the roll out of a number of low carbon heat driven projects across the country."
The first Ardor heat project is for Galliford Try Plc subsidiary, Linden Homes, at the former St Clements Hospital site in Bow, London with all 252 homes purchasing heat from a central energy centre and district heat network. The project will provide heat directly to homeowners, which include some social and affordable housing customers, via a long-term heat supply agreement and will use a dual-fuel biomass pellet and gas boiler system provided and maintained by Ardor.
Bachmann added: "Overcoming the complexities inherent in a multi-occupancy development such as St Clements, through the Ardor structure, demonstrates the added value SEP can bring to projects in the heat sector. We believe the Linden Homes project will act as an attractive template for heat and energy provision as a service for multi-tenant housing developments across the UK."
Wood Energy has been selected by SustinereUK for Ardor as its installation and long-term O&M partner, with the project due to commence heat supply in February 2016. Further renewable energy developments with care groups and housing associations are being progressed and will be announced shortly.
Steve Wilkinson, Managing Director of SustinereUK commented: "Interest in biomass and gas fired CHP systems is increasing and we have an exciting pipeline of potential projects which Ardor, with financial backing from SEP, can help deliver.
"We see a major opportunity in the provision of low carbon, fully managed heat and power services to businesses seeking to divert capital from non-core to core functions. SustinereUK is also excited that Ardor will fund multiple technology offerings, as this means customers are provided with a mix of the best available technologies to suit their needs."
Ardor will generate income from heat sales as well as through the Renewable Heat Incentive (RHI), the Government’s environmental programme that provides financial incentives to increase the uptake of renewable heat.
