Downing agrees investment terms for a £20m biomass pipeline
Downing, a London-based investment management firm, has recently agreed terms for a £20 million (€27.8m) pipeline of biomass installations with Strand Energy.
Under the terms of the agreement, Downing and Strand will form a joint venture – Strand Energy (Biomass) – to invest in biomass heating installations.
The joint venture has an initial target of £20 million of investment into the biomass sector over the next three years and will initially concentrate on containerised biomass heating installations above 100kw.
The heat produced will be sold to the end user and the company will claim the Renewable Heat Incentive (RHI).
Under the terms of the agreement, the pipeline of the projects, their installation, and the long-term maintenance of the projects, will be managed by Strand Energy on behalf of the joint venture company.
Michael Lucht, managing director of Strand Energy, says the company realises there is ‘considerable uncertainty’ in the market at the moment and is waiting for clarity on the future of the RHI.
‘However, our model is unique and its flexibility is creating new opportunities in the sector. Funding is readily available for qualified projects,’ Luch says.