Waste and bioenergy
Announcements prior to September 2017, including this announcement, occurred under previous ownership.
18 August 2014
John Laing and the UK Green Investment Bank (GIB) have today announced plans to invest in a new £74m green energy facility in Speyside, Scotland developed by Estover Energy Ltd (Estover).
The new biomass Combined Heat and Power (CHP) plant near Craigellachie, Moray, will generate 87.4 GWh per annum of renewable electricity – enough to power more than 20,000 homes. It will also generate 76.8 GWh per annum of renewable heat. Together, the carbon saving equates to 42,000 tCO2e per annum, the equivalent to taking over 18,000 cars off the road.
The project will create 123 jobs (100 in peak construction and 23 permanent) and support one of Scotland’s most important export industries.
The new CHP facility will contribute to reducing the cost of energy at The Macallan distillery by providing c. 90% of all of the steam needed in the distillation process. By using biomass to generate heat instead of natural gas, the distillery will reduce its greenhouse gas emissions by over 17,500 tCO2e, equivalent to taking almost 8,000 cars off the road.
John Laing and GIB intend to make a £26m equity investment in the project. The remainder of the funding, in the form of debt, will come from a bond to be issued by the project company and listed on the London Stock Exchange. When issued, the bond will be guaranteed by Infrastructure UK, part of HM Treasury. The bond marketing commenced today. GIB and John Laing’s investment is conditional on the successful conclusion of the bond process.
The project is being developed by Estover Energy, an Edinburgh and London based SME specialising in developing biomass CHP projects. The plant will be fuelled with sustainable forestry by-product sourced from the local area, one of the UK’s most productive forestry areas. A consortium of local growers and forest industry suppliers including Stobart Biomass Products Ltd. and UPM Tilhill will supply the plant.
Vince Cable
Business Secretary
Danny Alexander
Chief Secretary to the Treasury
Alistair Carmichael
The Secretary of State for Scotland
Lord Smith of Kelvin
Chairman of the UK Green Investment Bank
Derek Potts
Executive Director for Primary Investment at John Laing
Marcus Whately
Co-CEO of Estover Energy
Max Aitken
Co-CEO of Estover Energy
Graham MacWilliam
General Manager – Distillation, The Macallan
Media enquiries
Contacts
For John Laing: Jessica Thomas 020 7901 3507 jessica.thomas@laing.com
For Estover Energy: Max Aitken 020 7042 9472 max.aitken@estoverenergy.co.uk or Marcus Whately 020 7042 9474 marcus.whately@estoverenergy.co.uk
Notes to editors:
About the project
John Laing
John Laing plc is a leading international infrastructure investor and asset manager, principally for the public sector. By combining its skill in the management of development risk, project financing, asset management and operations with those of it chosen partners and the project supply chain, it has built an enviable reputation as a market leader in privately financed infrastructure. John Laing’s key target sectors include transport, accommodation, health, waste and renewable energy, focusing on markets in North America, the UK, Continental Europe and the Asia Pacific region.
Estover Energy
Estover Energy is a developer of biomass Combined Heat & Power plants, based in Edinburgh and London. The Speyside project is the first of a portfolio of similar plants that Estover is developing around the UK that provide low-carbon energy for British industry, create rural jobs, and deliver major infrastructure investment.