Specialist energy finance firm to raise £500m to fund UK renewable investments

Steven Blase
Steven Blase

Aurium Capital Markets – the specialist finance house which provides investors with access to innovative investment opportunities – has warned that the government’s recent announcement to phase out all coal fired stations within 10 years, has dramatically increased the chances of the UK having blackouts and energy security issues.

It says that the UK will have an increased reliance on renewable energy projects, which is why Aurium aims to raise up to £500 million for investment into the renewable energy sector in the UK – including adding to £200 million already raised to help build and acquire a portfolio of major biomass and Energy from Waste (EfW) plants in the UK.

Steven Blase, Partner, Aurium Capital Markets explained: “The decision to remove coal fired stations increases the risk of the lights going out in the UK because it will have a negative impact on our energy capacity. 

“Coal’s share of UK electricity generation was 30% in 2014, and renewables accounted for approximately 19%. This winter, for example, our overall excess energy capacity is just 1.5%.

“The announcement over coal makes the UK’s reliance on renewables even stronger, and we believe that the growing focus from investors for assets that provide long term steady returns with low or no correlation to other more mainstream asset classes makes this an increasingly attractive investment proposition for institutional investors.” 

The company is targeting institutional investors, who it says are placing a growing focus on investment opportunities that have low correlation with equities and bonds, and which can provide a steady and attractive long-term return.

Aurium addresses a fundamental barrier facing developers of UK renewable projects: a lack of specialist finance. It assesses risk based on the unique nature of renewable projects rather than more traditional metrics, delivering liquidity regardless of the stage of the project (e.g. construction finance), the speed of turnaround (i.e. weeks not months) or the size of the project (i.e. too small for larger institutions). 

Last year, Aurium sponsored the launch of Bioenergy Infrastructure Group (BIG), a platform established to invest in the construction of biomass and EfW plants in the UK.

BIG recently agreed to build a 21.5 MW EfW plant at Ince Park, Cheshire with a construction value of £87 million and also a £200 million 25 MW plant in Hull, East Yorkshire. 

The latter is expected to operational by January 2018 and will be the first Refuse Derived Fuel (RDF) based advanced combustion technology plant supported by the Government’s new Contracts for Difference (CfD) arrangements.

  • Hamish McPherson  Aurium Capital MarketsThe Renewable Energy Association’s BioEnergy (waste to energy) Group has appointed Hamish McPherson (pictured, left) from Aurium as its new chairman. The Waste To Energy Group’s focus is to promote and remove barriers to deployment of bioenergy technologies, thereby furthering the energy from waste sector.

Pixie Energy

Pixie logo Pixie Energy is an incubator and a facilitator of strategic research and project work, focusing on energy regulation, policy and markets at the local and national level. Find out more about Pixie Energy here.

Local Energy Matters: Scotland

Local Energy Matters: Scotland is a free-to-download brochure with a focus on energy tariffs in the two Scottish electricity distribution regions, as well news on local energy and low-carbon schemes.

Previous editions can be download here.

Scottish energy market overview

You can read an overview of the Scottish energy market here.

Scottish Government energy feed