Innova Energy secures £30 million debt funding from NatWest
Innova Energy has secured £30 million of debt funding from NatWest to finance a mixed portfolio of UK rooftop and ground-mounted solar PV1 projects with a total installed capacity of 57 MW.
The funding makes up part of NatWest’s commitment to provide £20bn of funding for climate and sustainable finance by the end of 2022 to accelerate the transition to a low carbon economy. This transaction represents one of the first SONIA4 based loans for a project finance funding requirement.
The portfolio of solar projects is part of Innova’s strategy and commitment to invest in quality assets generating green power across a diverse range UK sites, including selling power to industrial and commercial customers. The projects are accredited under both the government’s ROC2 and FIT3 regimes. The Innova portfolio generates 53.5GWh of electricity from solar and helps abate approximately 21,400 tonnes CO2 per annum.
Andrew Kaye, Director of Innova Energy, said: "We are now ideally placed to continue providing locally-generated green solutions to energy users across the UK.”
Gauri Kasbekar-Shah, Director, Project and Infrastructure Financing at NatWest added: “We have worked together on this innovative SONIA-based solution, which we believe to be the first for a renewables project finance deal and a template for future transactions in the sector.”
Drax advances biomass strategy with Pinnacle acquisition
The Group’s enlarged supply chain will have access to 4.9 million tonnes of operational capacity from 2022. Of this total, 2.9 million tonnes are available for Drax’s self-supply requirements in 2022, which will rise to 3.4 million tonnes in 2027.
The £424 million acquisition of the Canadian biomass pellet producer supports Drax' ambition to be carbon negative by 2030, using bioenergy with carbon capture and storage (BECCS) and will make a "significant contribution" in the UK cutting emissions by 78% by 2035 (click here).
This summer Drax will undertake maintenance on its CfD(2) biomass unit, including a high-pressure turbine upgrade to reduce maintenance costs and improve thermal efficiency, contributing to lower generation costs for Drax Power Station.
In March, Drax secured Capacity Market agreements for its hydro and pumped storage assets worth around £10 million for delivery October 2024-September 2025.
The limitations on BECCS are not technology but supply, with every gigatonne of CO2 stored per year requiring approximately 30-40 million hectares of BECCS feedstock, according to the Global CCS Institute. Nonetheless, BECCS should be seen as an essential complement to the required, wide-scale deployment of CCS to meet climate change targets, it concludes.