Low Carbon & Waste Energy Power Partners announce the sale of Doveryard Limited to Octopus Renewables to construct the 185,600 tonne Oldhall Energy Recovery Project
- First large-scale, subsidy free energy recovery project in western Scotland.
- Low Carbon, Waste Energy Power Partners (WEPP) and Octopus Renewables recently reached financial close on the construction of the net 17MWe Oldhall Energy Recovery plant in Scotland, capable of processing over 185,600 tonnes per annum of non-recyclable household and commercial & industrial (C&I) waste which would otherwise be sent to landfill or exported.
- STC Power S.r.l will fulfil the role of EPC Contractor with Standardkessel Baumgarte providing the main “chute to stack” technology solution.
- The project will secure >200 jobs during construction and create 40 local full-time roles during the operational life of the plant.
26 October 2021: Low Carbon and WEPP are delighted to announce the sale of Doveryard Limited to funds managed by Octopus Renewables, which will see the construction of the energy recovery facility on the Oldhall Industrial Estate in Irvine, Ayrshire. The planned facility, which has been in development for the last 3 years, will export 17 megawatts of low carbon electricity, enough to power 30,000 homes with the ability to provide high quality heat and steam to nearby high value businesses.
This facility will be the first large-scale, subsidy free energy recovery facility in western Scotland, bringing with it best available technology (BAT), an EPC contractor with over 40-year experience and a leading renewables investor.
The project will also benefit from long term feedstock agreements signed with both Enva and Geminor to supply the plant with the bulk of the 185,600 tonnes required per annum. These experienced suppliers will benefit the project and deliver an advanced residual waste solution to the local region.
North Ayrshire Council have remained very supportive of the project since inception and the project partners look forward to a long and fruitful relationship. The longer-term ambition of the project is to provide high quality steam and heat to local businesses, most notably the forthcoming i3 business park development, and support the council in achieving its low carbon objectives.
The project and land agreements were advised on by Ashurst LLP and TLT LLP respectively, and all technical aspects of the project transaction were supported by Fichtner Consulting Engineers.
Dominic Noel Johnson, Investment Director at Low Carbon, said: “We are delighted to have reached this milestone with our development partner, WEPP, and to have completed our first transaction with Octopus Renewables. This project is an excellent example of how to develop and structure greenfield projects from scratch in new markets with new partners. We are grateful to continue to play our part in a low carbon energy future for Scotland and look forward to seeing this project enter its next stage of development and the benefits it will bring to the local community.”
Mark Denham, CEO of Waste Energy Power Partners commented: “What makes this project unique is the real impact it will have in the local area – its capacity to power thousands of homes, divert waste that would otherwise be exported or sent to landfill and the economic benefits on local employment and business from this significant investment. We hope that this will provide a blueprint for similar projects in the future across the UK, as it is only by bringing together the right partners to work together and share expertise that it has been possible for us to get this development off the ground.”
Peter Dias, Investment Director, Octopus Renewables commented: “As one of the UK’s leading specialist investors in energy generation, we are thrilled to be able to acquire this landmark project for our investors. The project will play a crucial role in supporting Scotland’s target to ban landfill by 2025, enabling the waste to be used as a fuel source instead, and demonstrating the potential of technologies such as Energy Recovery in the UK’s diversified energy mix. It has been a pleasure working alongside Low Carbon, WEPP and the other partners on this deal and we look forward to progressing the project into construction and operation”
Michelle Scott General Manager, Enva commented: “The Oldhall Energy Recovery Project will play an important role in continuing to diversify Scotland’s energy mix and reducing the reliance on traditional fossil fuels. Unlocking the energy value of waste that cannot be recycled makes both environmental and economic sense and we look forward to working with all parties to deliver a consistent supply of high quality and sustainable fuel.”
James Maiden, Managing Director, Geminor commented: “Geminor UK is very pleased that the development process for the Oldhall Energy Recovery Project is now complete and look forward to preparing for and implementing the fuel supply plans following the construction phase of the project. The Oldhall Project is a welcome addition to Geminor’s growing domestic offtake capacity, which will be employed to serve our long-established customer base in Scotland”
About Low Carbon
Low Carbon is a leading renewable energy investment and asset management platform committed to the development and operation of renewable energy at scale. Low Carbon invests into both renewable energy developers and projects across a range of renewable energy technologies including solar PV, wind, energy storage, waste-to-energy and energy efficiency. Low Carbon, a certified B Corp, has a proven track record in the development, construction, financing and management of renewable energy assets and remains involved in the projects for the long term with a dedicated asset management team that manages assets on balance sheet and for third parties. The team is actively engaged in the UK and European waste-to-energy market with 6 assets in current development totalling 220MW and with a broader renewable energy pipeline of more than 5GW, they are well-positioned to capitalise on opportunities as the need for renewable energy and energy security increases.
Waste Energy Power (WEPP) Partners’ developments represent an important gateway to deploying effiecnt waste and energy infrastructure that make better use of waste and recycling resources. At WEPP our focus is on developments which offer significant investment opportunities as well as supporting local employment while aligning to global sustainability and renewable outcomes. Our experience of acquiring sites and delivering assets including the necessary planning permission, helps us develop the commercial frameworks required to support our assets. Combined with our management services business which oversee projects in their construction and operational phases, we are able to provide expert continuity for project stakeholders throughout the project life.
About Octopus Renewables
Octopus Renewables, part of Octopus Energy, is a specialist energy investor. It has a diverse portfolio of assets with a capacity of over 2.8GW, making it the largest commercial solar investor in Europe and a leading investor in onshore wind. In the UK it manages a portfolio of 197MWs of Biomass generation across 7 sites using a mixture of locally sourced feedstocks.
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