Pension fund backs Liverpool Waters’ low carbon heat network
Merseyside Pension Fund (MPF) is providing a £13m loan to support a project to supply low carbon energy and hot water to homes and businesses on Liverpool’s waterfront.
The Heat Network, which will be delivered by Peel Energy part of Peel L&P, will be an integral component to the Liverpool Waters regeneration project. Peel Energy has established a dedicated Energy Supply company which will build, own and operate the Heat Network. Completion is expected in 2023 and once complete, the first phase will provide up to 19 gigawatt hours of heat energy per annum to consumers at Liverpool Waters and the greater waterfront area.
The funding will facilitate the development of two temporary energy centres as well as initial underground pipes to transfer heat energy at the Princes and Central Docks, and northern areas of Liverpool Waters.
The funding marks the third investment backed by the Penson Fund’s Catalyst Vehicle since its establishment in 2017 and meets the ‘Catalyst’ criteria of supporting projects that support the economy in the Liverpool City Region.
Liverpool Waters aerial CGI
Muir Miller, Managing Director of Peel Energy, part of Peel L&P, said:
“We are very pleased the Mersey Heat project is being financially supported by the local Merseyside Catalyst Fund. Their involvement highlights the importance the Liverpool city region is placing on addressing low-carbon energy generation and its willingness to innovate.
So far, the UK has made great progress in de-carbonising the electricity sector but more needs to be done on heating and transport emissions. This is the first phase of a ten-year project, which we hope will eventually supply around 9,000 homes and numerous businesses along Liverpool’s waterfront. The scheme clearly demonstrates Peel L&P’s intent to play a significant part in tackling carbon dioxide emissions from heating, by providing a cost effective and attractive low carbon offering to developers.”
Joe Bahsoon, Director, Investment Advisory, CBRE Capital Advisors commented:
“We are very happy to be involved in arranging this loan facility on behalf of the Merseyside Pension Fund and to one of the region’s most established developers. The loan provides greater diversity to the existing investments made by the Fund and represents the opportunity to accelerate the delivery of an important regeneration project in the City region as well as facilitate low carbon heat and energy in keeping with the UK government’s Clean Growth Strategy.”
Cllr Pat Cleary, Chair of Merseyside Pension Fund said:
“Catalyst Fund represents MPF’s commitment to local development and regeneration making a positive impact on the communities its stakeholders live, work and retire into while seeking commercial return for its members.
“We are pleased to have made our third Catalyst Fund investment which will provide cost effective heat and power solution to up to 9000 homes and 4 million sq ft of commercial space with cleaner CHP technology as part of the UK’s drive to reduce carbon emissions.
“This project will contribute towards the UK Govt.’s CO2 targets by delivering low carbon heat and power and make Liverpool a greener place to live, work and visit. We look forward to the potential of making similar investments in the future.”
Visit liverpoolwaters.co.uk/