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July 2014  

STAR Capital Partners funds Twinwoods CHP Project

STAR Capital Partners (“STAR”), a leading European fund manager, announces the establishment of European Generation Ltd, a vehicle focused on investing in small scale renewables projects in the UK. European Generation has committed funding to Twinwoods Heat & Power Ltd (“THPL”), a company that was established to develop and construct a 3.4MW combined heat and power facility on the Twinwoods Industrial Park in Bedfordshire. .

THPL has already commenced a 14 month construction programme and, once complete, the plant will utilise c. 40,000 tpa of locally sourced waste wood that would otherwise have been exported or landfilled. Power from the project will be sold to the grid and on-site users. Heat can be provided to on-site users and the project will qualify for revenue support under the UK government’s 20-year ROC regime. STAR worked with B&W Waste Management (the original project developer) and EIDC to bring together a group of equipment suppliers as an integrated team, under the overall management of Saxlund International.

The investment is attractive to STAR as it has an existing grid connection, full planning permission and environmental consents with significant infrastructure already built and funded by the previous investors and lenders. STAR acquired THPL in a transaction agreed with the controlling lender.

Uniti Bhalla, partner at STAR said:
"This transaction was borne out of an initiative to invest in small scale renewable assets in the UK with the aim of building a portfolio of scale. Twinwoods represents exactly the type of investment that we are targeting – core infrastructure with some associated complexity, thereby delivering a good risk adjusted return. We continue to see attractive opportunities in this niche".

The transaction was funded by a group of investors connected with STAR and the STAR Funds. It demonstrates STAR’s ability to continue to originate and execute exclusive deals in its core sectors.


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