The fund managed by Sustainable Development Capital Limited (SDCL), the UK Energy Efficiency Investments (UKEEI), of which UK Green Investment Bank plc (GIB) is a cornerstone investor, has pledged £7m to a major energy efficiency project which aims to cut carbon measures in the North East of England.
Additional capital has been committed by a parallel SDCL-managed fund, UK Energy Efficiency Investments (UKEEI) 1A.
New steam-raising boilers, compressor technology and other heat-recovery measures will be installed at Huntsman’s plant in Wilton, Redcar. The project is expected to provide the global chemical manufacturer with long-term cost certainty, energy security and resilience.
Upon completion, Huntsman expects to produce 100% of its on-site steam requirements, leading to an estimated reduction in greenhouse gas emissions by up to 28,000 tonnes per annum – the equivalent of removing 12,750 cars from the road for the life of the project
SDCL expects the project to make the biggest impact of any investment made by the UKEEI fund to date in terms of greenhouse gas emissions reduced per pound of investment.
ENGIE has been appointed engineering, procurement and construction (EPC) contractor, as well as being awarded the operations and maintenance (O&M) contract for the project.
Construction work has commenced with the project scheduled for completion by summer 2017.
Edward Northam, Head of Investment Banking, GIB, said:
“Many manufacturers continue to rely on low-efficiency boilers to service their energy needs. By investing in new technology, the country’s energy intensive industries can reduce energy wastage.
Huntsman is an example to its peers; it has recognised that it can cut costs and help mitigate climate change by making its processes more energy efficient.
David Maxwell, Investment Director, SDCL, said:
“SDCL are delighted to be working with a world-class team to deliver a major steam generation project to Huntsman. The turnkey solution, which will encompass all elements of the project from design and construction through to the long term operation and maintenance of the plant, will deliver significant cost savings, energy resilience and long-term price certainty to Huntsman. This project demonstrates that energy efficiency is one of the largest and most cost effective sources of greenhouse gas emission reductions.”
Paul Rawson, UK Divisional CEO for Energy Solutions, ENGIE, said:
“ENGIE are delighted to be working with Huntsman, SDCL and the Green Investment Bank on this innovative new plant. Through the delivery of the design, build and on-going operation and maintenance of the scheme, ENGIE will provide a resilient, cost effective solution which significantly reduces carbon emissions”.