By Stuart Reid, Managing Director (Projects) at AMP Clean Energy
Financial barriers are preventing large industrials from making the switch to low carbon technologies, but our new funding solution could help break the deadlock, says Stuart Reid, Managing Director (projects) of AMP Clean Energy
It is estimated that industry is responsible for two thirds of all the UK’s greenhouse gas emissions with two-thirds of these thought to be from energy intensive users such as steel and glass manufacturers. These figures demonstrate the huge potential for industrial decarbonisation and the knock-on benefit that this would have in helping meet the UK’s emissions reductions targets.
Intensive energy users also stand to gain from significant cost and carbon savings by switching from fossil fuels to low carbon technologies. If this is a win-win situation for industry and the Government alike, why has it yet to happen?
We’ve spent the last year or so talking to industrial organisations across a range of energy intensive sectors including glass, steel, chemicals, plastics, construction and food and drink. All have knowledgeable energy managers in place, many of whom have devised low carbon projects for their organisations. However, the major hurdle they face, is that the pay back periods for projects such as developing a low carbon energy centre or a launching major energy efficiency initiative, cannot compete with other organisational priorities for capital investment.
That’s why, during the next five years, AMP Clean Energy aims to deploy clean energy projects to the value of £500 million. We’re keen to hear from trail-blazing energy managers, technological innovators and progressive contractors who need no-risk funding that will get their own or their customers’ low carbon projects off the ground.
As well as being the go-to funder of projects developed by others, AMP Clean Energy also has experience of developing a range of technologies and projects to suit intensive energy users including biomass, gas CHP and waste heat recovery. We have the in-house expertise to model which technology solution will deliver the most cost-effective decarbonisation of an organisation’s site and to accurately identify future carbon and cost savings.
AMP Clean Energy has access to a long term funding vehicle, with readily available finance which means we can get projects off the ground quickly. We have used the funding vehicle to finance more than 120 projects and deploy £50 million in a range of technical solutions including CHP, biomass heating systems and heat pumps
Long term energy supply agreements, known as ESCOs are used to fund, develop, and sometimes operate, low carbon and renewable installations. ESCO’s typically operate for a 10 to 20-year period during which the customer simply pays for the heat or electricity they use through a secure energy supply agreement.
We’re looking forward to investing in the UK’s low carbon energy future and helping support industrial decarbonisation. If you have a low-carbon project which requires funding, please do get in touch.