Aesica to Benefit from Investment in New £137 Million Northumberland Green Energy Plant

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Aesica to Benefit from Investment in New £137 Million Northumberland Green Energy Plant

Aesica LogoAesica, the global pharmaceutical contract development and manufacturing organization (CDMO), is pleased to announce its involvement in a renewable green initiative involving its Cramlington (UK) site.

UK Green Investment Bank plc (GIB) and John Laing Investments Limited (JLI) have committed £50 million of equity to a new £137 million renewable energy facility in North East England, developed by Estover Energy. The biomass Combined Heat and Power (CHP) plant in Cramlington, Northumberland, will generate 223 GWh of renewable electricity annually. It is expected to reduce greenhouse gas emissions by circa

[56] kt CO2e annually, the equivalent of taking 25,000 cars off the road during its lifetime.

Aesica Pharmaceuticals, together with another pharma company, will benefit directly from its output, alongside the National Grid. Green electricity will be routed to Aesica’s Cramlington site located in an adjacent industrial estate. The energy plant will also have the potential to provide 5 MW of renewable heat to neighbouring facilities.

GIB will make a £23 million investment in the project, with JLI investing in a stake worth £27 million. Barclays will provide the remainder of the funding as debt, 60% of which will be guaranteed by the Danish export credit agency Eksport Kredit Fonden (EKF).

The construction of the plant will be undertaken by a joint venture between Burmeister & Wain Energy A/S (BWE) and Burmeister & Wain Scandinavian Contractors A/S (BWSC). BWSC will operate the plant upon completion. Up to 250 jobs are expected to be created during the construction process, while 25 permanent positions will be maintained at the operational facility.

Fuel for the plant will be provided by Stobart Biomass Products Limited, plus local growers and forest industry suppliers.

Ian Muir, Managing Director at Aesica, commented: “Our company is  committed to best environmental practice and indeed our Cramlington site complies in full with ISO 14001 and all appropriate environmental legislation. Consequently, we are always on the lookout for maximizing the use of green, environmentally friendly energy.”

He continued: “We are therefore delighted to receive our energy supply moving forwards from the biomass combined heat and power plant and to playing our role through this initiative in reducing greenhouse emissions.”

Ed Northam, Head of Investment Banking at the UK Green Investment Bank, said: “The Cramlington plant promises to create local jobs, support an industry whose vitality is essential to the growth of the regional economy and help cut UK greenhouse gas emissions while promoting the country’s adoption of green energy sources.”