Major new investment for Fort William biomass company

Highland based biomass heating specialist, HWEnergy, has announced that Aggregated Micro Power Holdings plc (AMP) (LON: AMPH) has become their majority shareholder following a significant investment into the company.

The partnership means that HWEnergy will be able to grow the breadth and depth of their offering to new customers, as well as increase their geographical spread, while remain as an independent and stand-alone business. Operations in Scotland will continue as usual but the new investment will enable HWEnergy to offer finance for larger biomass installations via new Energy Services Company (ESCo) finance solutions (see Notes to Editors) in partnership with AMP.

Established in 2003, HWEnergy has a staff of 45 and has installed more than 300 commercial-sized biomass installations to date from Shetland to London . The company is headquartered in Fort William, with an additional office in Bellshill, Glasgow, and services and maintains more than 350 sites across the UK.

Aggregated Micro Power Holdings is a distributed energy company specialising in the sale of wood fuels through their Forest Fuels business, and in the financing, development and installation of energy projects including biomass boiler ESCOs (Energy Supply Contracts) and standby power generation and battery storage facilities. Forest Fuels are one of the leading wood fuels businesses in England and Wales, with annual sales of over 100,000 tonnes of wood fuel to 2,300 customers from more than 40 depots.

HWEnergy is entering into the partnership with Forest Fuels whereby together they will grow a biomass service and heat supply business in England and Wales. HWEnergy and Forest Fuels currently have about 300 service customers in England and Wales. Going forward, the service function of the two companies will be managed from HWEnergy’s support desk at their Fort William HQ.

Bruno Berardelli, Managing Director of HWEnergy said: "We have entered into this relationship with AMP as we believe that this provides an extremely exciting range of opportunities for our clients, our company and all of our stakeholders. AMP’s vision for the development of decentralised energy provision is one which we believe will benefit the economy of the country as a whole, help reduce carbon emissions from energy production and provide numerous benefits to our clients. Forest Fuels have long standing credentials in their commitment to growing a sustainable and high-quality business in the biomass industry, with a focus on local delivery and customer service. They are the ideal partner for us to work with in England and Wales."

Richard Burrell, Chief Executive Officer of AMP said: "We are very excited to be working with HWEnergy. Their long-standing experience and reputation in the biomass sector will lead to immediate synergies with our own businesses. Our partnership will mean that HWEnergy will be able to offer new ESCo and Commercial boiler buy back products to clients in Scotland, and that they will be able to work with Forest Fuels to expand our Service and Heat business in England and Wales. We very much look forward to working with the HWEnergy team in the future."

 

 

About HWEnergy

Established in 2003, the company currently has a staff of 45 and has installed more than 300 commercial-sized biomass installations to date. Installations span from Shetland to Bradford and cover a wide range of sectors.

Headquartered in Fort William, the company also has offices in Bellshill and services and maintains more than 350 sites across the country.

The company has worked on projects ranging from small district heating schemes to large hospitals and has a team of locally based engineers across Scotland and England.

The team received the Sustainable Scotland 2016 Scottish Green Energy Award in partnership with North Ayrshire Council and the Renewable Project of the Year 2014 for their work with NHS Highland and Ayrshire and Arran.

About AMP PLC

Aggregated Micro Power Holdings is a distributed energy company specialising in the sale of wood fuels through their Forest Fuels business, and in the financing, development and installation of energy projects including biomass boiler ESCOs (Energy Supply Contracts) and standby power generation and battery storage facilities.

AMP have over £66m of energy assets under management, including biomass heating and CHP systems, and grid balancing systems. AMP also has access to considerable funding for new ESCOs via Aggregated Micro Power Infrastructure 2 plc (“AMPIL”) which has just raised £29.5m for new ESCOs.

About Biomass

Wood heat or biomass heat is one of the most cost-effective forms of low carbon energy. Wood chips or wood pellets are used a fuel in highly efficient boilers that deliver heat via a water-based central heating or district heating system to a building or collection of buildings. Wood is sourced from locally managed forests where new trees are constantly grown and although wood gives off C02 when burnt, it is offset by the amount of CO2 absorbed by the trees when they grow.

Heat in all its forms currently accounts for nearly half of the UK’s carbon emissions and the Scottish Government has set targets for 11% of all energy to be provided from renewable sources by 2020.

About ESCOs

Companies interested in installing a biomass heating system but unable to raise the capital investment necessary can benefit from a fully financed ESCo (Energy Services Company) solution. Under this model the biomass boiler and associated equipment remains the property of the financier who retains the Renewable Heat Incentive (RHI) payments and take responsibility for the system’s ongoing service and operation. Meanwhile, the customer receives the cost savings and environmental benefits against other fuels and pays an agreed amount for heat per kWh, billed on a monthly basis.


Categories: Bio-massInvestments