Renewable Energy Venture Gets Pounds 100m Boost

South wales renewable energy venture Eco2 has received a pounds 100m boost to develop its portfolio of projects. The investment in the Cardiff- based venture has come from leading renewable energy financial investor, Englefield Capital. The deal includes a pounds 70m debt- funding package from Bank of Tokyo Mitsubishi UFJ. The initial phase of the deal will involve the financing of two Eco2 projects. They are Dummuie Wind Farm – a 12.25 megawatt project in Aberdeenshire – and a 13.8 megawatt wood-fuelled power plant in Port Talbot.

The Dummuie Wind Farm is now in its construction phase. while work on the wood-fuelled plant is expected to start shortly.

Scottish Power has signed a 15-year power purchase agreement for the output from the Dummuie Wind Farm.

A pipeline joint-venture agreement to finance a number of Eco2 projects going forward is also included in the contract, involving a number of future wind farms being developed by Eco2.

David Williams, managing director of Eco2, said, ‘This deal is a really positive step for us.

‘It secures funding for the projects as well as our long-term involvement in them.

‘It will also allow Eco2 to continue developing successful projects throughout the UK. We’re looking forward to working with our new investment partners.’

Under the terms of the agreement, the Eco2 management team will remain responsible for the construction, operation and maintenance of the projects.

Eco2′s landfill gas portfolio is not included in the contract.

Andrew Lee of Englefield Capital said, ‘We are delighted to have forged this relationship with Eco2, which is one of the UK’s most entrepreneurial developers, and to be investing in three projects of such high quality.’

The Government has set a target of producing 15% of the UK’s electricity requirements from renewable sources by 2015 to help tackle climate change.

Peter Darwell, founder and director of Eco2, said, ‘We remain committed to developing a successful renewable energy business in order to help combat the negative effects of global climate change and help meet government targets.

‘These projects will make a valuable contribution towards these targets.’