Hydro sales extend Virgin Money low carbon portfolio
Munergie hydro scheme
Two hydro schemes in the Highlands have been sold to an acquisitions vehicle set up to invest in low carbon energy projects.
Foster Turner Hydro, a joint venture formed by CRF Hydro Power and Turner & Co (Glasgow), is providing an undisclosed level of equity to Scottish Hydro Investments which will acquire the Glen Buck and Munergie schemes from Guinness Asset Management.
The JV owns 100% of the share capital of Scottish Hydro Investments which, in turn, owns the equity of Hydro Energy Trading and Green Energy Trading, owners and operators of the two Invergarry schemes.
An £8m long-term loan is being provided by Virgin Money, further developing the bank’s portfolio of sustainable lending and its pledge to halve the carbon impact of its loan book by 2030.
Totalling 3MW and utilising storage capacity, it is anticipated the schemes will produce over 10GWh of electricity per annum, following a period of upgrade works.
Keith Wilson, head of renewable energy at Virgin Money, said: “While sometimes overlooked, medium-scale hydro schemes have an important role to play in supporting the energy transition, particularly those capable of delivering power at times of peak demand, as is the case here.”
Virgin Money has previously supported CRF Hydropower. This involved a multi-million-pound package which assisted the growth of its hydro portfolio across Scotland.
CRF Hydropower now owns and operates 11 hydro schemes which have a combined capacity in excess of 7.7MW.
The company jointly with Turner & Co (Glasgow) already owns one additional hydro scheme, which is currently under construction.
This new deal will be both their second and third joint ventures together, further supporting each company’s drive for carbon reduction.