Scottish renewable energy company UrbanWind has sealed a £30 million funding deal to kick-start onshore turbine projects across the UK.
In a major boost for the industry, the company has announced one of the largest investment deals in the on-shore sector with private equity fund manager Zouk Capital.
Zouk Capital will provide equity finance to fund turbine schemes, which have successfully gone through the planning process but currently lack the funding necessary to develop them.
Glasgow-based UrbanWind has around 100 sites across the country in the development appraisal phase, including consented sites. They are now being evaluated for funding approval.
The deal will see Zouk buy consented sites from UrbanWind. It will then develop them through a joint venture set up between both companies.
Paul McCullagh, Urban Wind’s Chief Executive, described the deal as “ground-breaking.”
He said: “It will enable UrbanWind to move ahead with our development plans and is also a powerful endorsement of the future that wind technology has in the UK.
“We look forward to working with Zouk to bring wind turbine technology plans off the drawing board and into reality on sites across the country.”
Colin Campbell, Managing Partner at Zouk Capital, said: “We are very happy to be supporting UrbanWind with this innovative funding allocation, which creates an opportunity for developers, farmers and landowners across the UK to unlock the potential of consented sites.
“Our partnership with UrbanWind offers us an exciting opportunity in on-shore wind and fits our fund’s capital gain strategy well”.
UrbanWind is also looking to acquire more consented sites for wind turbine projects as it continues to develop its strategy in partnership with Zouk.