Downing LLP agrees investment terms for a £20m biomass installation pipeline with Strand Energy Ltd
Downing LLP has recently agreed terms for a £20m pipeline of biomass installations with Strand Energy Ltd.
130kw biomass system installation
Downing LLP has recently agreed terms for a £20m pipeline of biomass installations with Strand Energy Ltd.
Under the terms of the agreement Downing and Strand Energy Ltd will form a joint venture – Strand Energy (Biomass) LLP – to invest in biomass heating installations.
The joint venture has an initial target of £20m GBP of investment into the biomass sector over the next three years and will initially concentrate on containerised biomass heating installations above 100kw. The heat produced will be sold to the end user and the LLP will claim the Renewable Heat Incentive (RHI).
Under the terms of the agreement the pipeline of projects, their installation and the long termmaintenance of the projects will be managed by Strand Energy Ltd on behalf of the LLP.
Michael Lucht, MD of Strand Energy commented:
“We are very happy to have the support of such a significant investment company as Downing and are looking forward to getting to work as soon as possible on installations that are good for our end users and contribute to our investment portfolio.”
“We realise that there’s considerable uncertainty in the market at the moment and we are waiting for clarity on the future of the RHI. However, our model is unique and its flexibility is creating new opportunities in the sector. Funding is readily available for qualified projects and we would encourage installers or end users with suitable sites to get in touch with us as soon as possible via our website.”
David Freeder, Investment Director at Downing LLP commented:
“We are delighted to have teamed up with Strand Energy to fund the construction of its pipeline of biomass installations. Biomass heat is an important part of the UK’s energy mix and investment in this sector will help end-users to reduce their dependency on fosil fuels and reduce energy costs. The deal offers Downing’s investor base access to a business able to claim the RHI – an attractive, index-linked tariff for renewable heat generation for 20 years from the date that a project is registered. Despite the challenging regulatory environment , this investment agreement is a good example of how Downing is continuing to invest into energy infrastructure projects.”
