Bird & Bird today announces that its Energy & Utilities Sector Group has advised Roundwood Energy, an energy services company, on a £10m investment. Energy Saving Investments, in which the UK Green Investment Bank (GIB) is a cornerstone investor, has invested £4.9m, with a further £5.1 million of investment mobilised from the Equitix Energy Efficiency Fund.
Roundwood Energy is responsible for financing, installing, maintaining and fuelling new renewable heating systems for up to 20 years. The investment will allow for the funding of over 60 projects, benefitting a varied mix of public and private sector organisations including care homes, schools, leisure facilities and local authority projects through the replacement of inefficient heating systems. In addition to the benefits of driving a green economy and considerably reducing carbon emissions, switching to biomass boilers could save up to 30% on energy bills.
Roundwood Energy will be supported in the delivery of this project by its technology partner, Woodpecker Energy Limited, a UK based manufacturer of wood pellet and wood chip biomass boilers.
Michael Rudd, partner, Bird & Bird said: "We are delighted to have advised Roundwood Energy on this first, important deal, and look forward to assisting it as its business grows. We are grateful to be working with a broad stakeholder community who share a common commitment to grow the energy efficiency market.”
Paul Hughes, Director of Roundwood Energy said: “We are delighted to have received the support and funding from both the UK Green Investment Bank and Equitix. This backing allows Roundwood to reduce both the energy bills and the carbon emissions of our clients without the need for up-front capital investment. The support of our partners, Woodpecker Energy and advisors, Bird & Bird and BDO has been invaluable in enabling our business to move forward to provide a groundbreaking long-term solution for our customers.”
The Bird & Bird team was comprised of Michael Rudd, Matt Bonass, Isabel Evans, Jennifer Bird, Levent Gurdenli and Helen Down.
BDO also advised Roundwood Energy with a team led by Michael Ware and Erich Scherer.
BDO’s Michael Ware commented:
“This is a trail blazing deal because it is one of the first to use project finance type structures on relatively small scale biomass installs. I think it will be the template for major investment into the small biomass space by institutional funders and we are very proud to be associated with it.”