£5 billion of energy investment projects announced as the Board of Trade meets in Wales

15 Nov 2018 04:34 PM

The President of the Board of Trade, Liam Fox, announces the launch of the UK’s first Energy Investment Portfolio, worth an estimated £5 billion.

Around £5 billion of energy and infrastructure projects across the UK will be promoted to global investors as part of a new portfolio of opportunities, the International Trade Secretary yesterday (15 November) announced at the Board of Trade in Swansea.

The eleven new projects in the Energy Investment Portfolio will not only create jobs in the energy sector, but will reduce energy costs for hard-working British families and have widespread benefits for the environment.

The opportunities are across the UK, including:

• up to £1 billion of anticipated investment in to the City Leap Programme in Bristol
• £65 million of opportunity in the Mishergas Waste to Fuel Plant, also in Bristol
• £60 million of potential investment to the Carlton Forest Waste to Energy Plant in Nottinghamshire
• around £480 million for new CoGen Waste to Energy Plants in Birmingham, Cardiff and North Lanarkshire.
• around £40 million of investment for a Reliagen integrated electric vehicle and battery storage facility in West London
• two projects worth an estimated total of £135 million in Wales
• two projects worth a projected £1 billion in Scotland, including Aberdeen Hydrogen
• almost £3 billion for UK-wide projects including Gridserve’s Electric Vehicle Forecourt Network and Pivot Power’s battery storage and electric vehicle charging project

The Energy Investment Portfolio is the latest offer for international investors, following the launch of seven new investment projects in October, worth £2 billion.

International Trade Secretary and President of the Board of Trade, The Rt Hon Dr Liam Fox MP yesterday said:

The Energy Investment Portfolio will deliver growth in new innovative sectors, encouraging creativity, creating jobs and driving prosperity across the UK.

My international economic department has established relationships with the world’s most influential investors to ensure that the UK continues to be the top destination in Europe for Foreign Direct Investment – and today’s announcement is further proof that there is huge demand for UK projects from investors.

Minister for Investment, Graham Stuart MP yesterday said:

With £5 billion of new projects, the Energy Investment Portfolio is great news for communities up and down the country – as well as creating jobs and prosperity, these projects will reduce bills and deliver huge benefits for the environment.

The government’s commitment to clean growth and innovation provides huge investment opportunities in the UK’s energy sector, which already employs 181,000 people and generates the most offshore wind power in the world. The department has a global network of HMTCs and experts across more than 100 countries who are promoting the UK and attracting the backing needed to make these projects a reality.

The Department for International Trade (DIT) will promote these opportunities to investors in 108 countries through its global network of HMTCs and in-country experts.

The UK is Europe’s top destination for foreign direct investment, and recent data released by UNCTAD showed the UK had the second highest level of investment globally in the first six months of this year. Read Liam Fox’s response to this announcement.

It also has one of the world’s top five most innovative economies according to the Global Innovation Index, as well as four of the world’s top ten universities.

The UK’s energy sector is also well-complemented by a burgeoning advanced manufacturing sector which has over 100,000 companies, and more venture capital investment than other country in Europe.

UK Energy Capital Investment projects:

England

• Carlton Forest Waste to Energy Plant, Worksop Nottinghamshire (£60m): With a capital requirement of £60 million, this project provides an opportunity for investment in the development and operation of a waste to energy plant with diverse revenue streams and strong investment returns. The developers will consider a variety of investor involvement to include combined debt and equity or co-investment. The Project will be owned and operated under a special purpose vehicle to be set-up by the developers.
• Bristol City Leap programme (£1bn): Bristol City Council is seeking investment and development partners for a low carbon energy infrastructure programme of between £800 million and £1 billion. The Council is open to a variety of investor involvement to include equity partners, co-investment or development funding. This is an early stage opportunity to shape the programme and offers the potential for a long-term relationship with this public sector partner.
• CoGen Waste to Energy plant, Birmingham (£190m): CoGen is offering an opportunity for investment into the development of a £190 million waste to energy facility in Birmingham. Using proven technology, the project benefits from a long-term contracted revenue stream and strong investment returns. CoGen will consider a variety of investor involvement to include equity investment, blended debt and equity, or co-investment. This project forms part of a strong development pipeline of waste to energy projects being developed by CoGen, leading to potential wider funding opportunities.
• Mishergas Waster to Fuel plant, Avonmouth, Bristol (£65m): Mishergas is offering an opportunity for investment into the development of a £65 million waste to fuel facility. The project benefits from multiple revenue streams and strong investment returns. The developers will consider a variety of investor involvement to include equity investment, blended debt and equity, co-investment or development funding. The Project will be owned and operated under a special purpose vehicle to be set-up by the developers.
• Reliagen integrated electric vehicle and battery storage facility, West London (£40m): With a capital requirement of £40 million, this project provides an opportunity for investment in the development and operation of an integrated electric vehicle charging and battery storage facility. Reliagen is developing a pipeline of similar sites around London and other cities of the UK, where opportunities exist to integrate commercial scale electric vehicle charging hubs with battery storage facilities connected to the electricity grid. As a result, Reliagen is open to discuss wider development capital investment, as well as out-right purchase of this project’s development rights.
• Green Hedge Battery Storage portfolio disposal – UK wide (£50m): Green Hedge Energy is offering a £50 million portfolio of development rights in five battery storage facilities at various locations across the UK. A variety of investor involvement is possible, including equity partners and co-investment. The individual facilities provide an investor with the flexibility to maximise returns by creating multiple parallel income streams. Opportunities also exist to acquire development rights of individual battery storage facilities within the portfolio.
• Gridserve Electric Vehicle Forecourt Network – UK Wide (£1bn): With a total capital requirement of up to £1 billion, this project provides an opportunity for investment in the development and operation of a national network of electric vehicle forecourts. The project has the potential to generate diverse and parallel revenue streams from a range of sources, delivering strong investment returns. GRIDSERVE will consider a variety of investment involvement to include equity, combined debt and equity, co-investment, and development funding. The project’s capital funding will be phased over the development cycle.
• Pivot Power, Integrated battery storage and electric vehicle charging project – UK wide (£1.6bn): With a total capital requirement of up to £1.6 billion, this project provides an opportunity for investment in the development of a national network of integrated grid-scale battery storage and electric vehicle charging facilities. The Pivot Power will consider a variety of investor involvement to include equity partners, co-investment or development funding. The project’s capital funding will be phased over the development cycle offering the opportunity to partner with a market-leading project.

Wales

• CoGen Waste to Energy plant, Cardiff, Wales (£100m): CoGen is offering an opportunity for investment into the development of a £100 million waste to energy facility in Cardiff, Wales. Using proven technology, the project benefits from a long-term contracted revenue stream and strong investment returns. CoGen will consider a variety of investor involvement to include equity investment, blended debt and equity, or co-investment. This project forms part of a strong development pipeline of waste to energy projects being developed by CoGen, leading to potential wider funding opportunities.
• Morlais Marine Energy Infrastructure project, North West Wales (£35m): Menter Môn is offering an opportunity for investment into the development of a £35 million marine energy infrastructure facility. The project benefits from stable revenue streams and strong investment returns. The developers will consider a variety of investor involvement to include equity partners, co-investment or development funding. The project offers investment opportunities into a market-enabling project.

Scotland

• Aberdeen Hydrogen Infrastructure development programme, Aberdeen and North East Scotland (£850m): Aberdeen City Council is seeking investment and development partners for a £850 million hydrogen infrastructure development programme comprising a strategically co-ordinated range of subsidiary projects. The Council is open to a variety of investor involvement to include debt and equity partners, co-investment, and development funding. This is an early stage opportunity to shape the programme and offers the potential for a long-term relationship with this public sector partner.
• CoGen Waste to Energy plant, North Lanarkshire, Scotland (£190m): CoGen is offering an opportunity for investment into the development of a £190 million waste to energy facility in North Lanarkshire, Scotland. Using proven technology, the project benefits from a long-term contracted revenue stream and strong investment returns. CoGen will consider a variety of investor involvement to include equity investment, blended debt and equity, or co-investment. This project forms part of a strong development pipeline of waste to energy projects being developed by CoGen, leading to potential wider funding opportunities.

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